Friday, June 03, 2005

What a Juncker

Found in the Comment box over at EU Referendum this priceless piece of economic illiteracy and blind wishful thinking.
LUXEMBOURG (AFX) - 11.59 June 3. There is a risk of euro exchange rates developing in such a way that they decouple from the economic conditions underpinning the currency, Luxembourg Prime Minister Jean-Claude Juncker has said.

"The (recent) fall in the euro is characterised by insecurities linked to the European project" following French and Dutch voters' rejection of the bloc's proposed constitution, said Juncker, whose country holds the rotating EU presidency. "We are running the risk of euro exchange rates developing in such a way that they no longer reflect economic reality," he added.

Now if one remembers the divergence in Euro designated government bonds between Germany and Italy we really are beggining to see a serious problem over in Euro land.

1 comment:

Anonymous said...

sorry - but I don' see the illiteracy there - Juncker is simply saying that the political crisis in the EU may affect sentiment around the €, and affect the € exchange rate againt other currencies, independently of economic fundamentals; well - in my view this is from the university of the bleeding obvious; but economically illiterate? no