Italys soon-to-be newly elected prime minister, Silvio Berlusconi, pledged to ally with the president of France, Nicolas Sarkozy, in his strife to persuade ECB to weaken the united Europes currency by the means of the intervention.
Concerned with the weakness of the Italys exporters, Berlusconi is aiming to eliminate the prime reason for this the dollar-euro rate imbalance:
A very strong euro is hurting Italys economy. I will discuss intervening with the ECB with Sarkozy.
ECBs reaction was quite fast and very critical. Jurgen Stark, ECB board member, commented Berlusconis pledge:
I would recommend to political leaders in Europe, newly elected and re-elected, to read the European law on the ECB.
Meanwhile, the euro just broke a new all-time high record against the U.S. dollar. EUR/USD reached 1.5960 level at about 9:50 GMT on Forex.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.