European policymakers agree that the euro's strength relative to other world currencies is a "question of balance," a French government minister said Thursday.
The euro has surged to record highs against the dollar and other world currencies in recent months, causing some officials to fear that its excessive strength will cut into competitiveness.
French Minister for Europe Jean-Pierre Jouyet said "now we have a consensus that we need to get an equilibrium (on the euro)....Its a question of balance."
Speaking at the London School of Economics, he stressed that although the strength of the single currency is creating "a problem for some specific industries" it is also offering benefits for European citizens.
"When we have this level of energy prices - oil and gas prices - the strength of the euro is protecting the European citizens from price pressures," he said.
Jouyet said that the strong euro helps to offset the more general price rises and enhances the currency bloc's standing as a global economic player.
"If you want to improve the visibility of the eurozone the currency strength is not a disadvantage," he said.
-By Joe Parkinson and Emma Charlton, Dow Jones Newswires. Contact the writer via email: Joe.Parkinson@DowJones.com. This article originally published at www.afxnews.com.
French Official: Euro Strength Mitigates High Energy Prices
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