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Ecofin minister discuss French deficit and strong euro

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Ecofin minister discuss French deficit and strong euro

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European finance ministers meeting in Brussels this week, are due to formally remove the threat of sanctions against France for breaking EU budget rules by running a deficit above 3% of gross domestic product.

Ahead of that meeting, the 13 euro zone ministers gathered and the chairman of the Eurogroup, Luxembourg’s Jean-Claude Juncker, said they are “increasingly worried” about the effect on exports of the strength of the single European currency against the Japanese yen.

The euro-dollar exchange rate also remains a concern, but it has fallen back slightly to around the $1.30 level that ministers and EU officials say they can live with.

The yen is close to a record low against the euro and Europe fears that will make it difficult to sell in Japan and its exports will also suffer from cheap competition from Japan.