Euro Fights for Foothold amid Woes Agenda 2000 Summit in Berlin March 24 to Test European Cooperation on Tough Budgetary Issues

By David R. Francis, writer of The Christian Science Monitor | The Christian Science Monitor, March 2, 1999 | Go to article overview

Euro Fights for Foothold amid Woes Agenda 2000 Summit in Berlin March 24 to Test European Cooperation on Tough Budgetary Issues


David R. Francis, writer of The Christian Science Monitor, The Christian Science Monitor


Money trouble is rattling Euroland as the euro - common currency for 11 countries - hits a rough spot two months after its launch.

The skid could end before it has time to deeply impact trade. But if Europe can't afford US goods, American industry takes a hit - even as the dynamic dollar gains from its popularity in world markets.

For now, while the euro has lost some 7 percent of its value in relation to the dollar, raising questions about Europe's early success at forming a powerhouse monetary union, the drop doesn't appear to trouble European economists. "The euro should be in the future a bit stronger," says Ulrich Ramm, chief economist in Frankfurt of Commerzbank, one of Germany's largest banks. What's happened, economists explain, is that the economic paths of Europe and the US have dramatically diverged: The US direction is up. Europe's economic outlook has slipped. That difference has helped make the dollar more attractive on foreign-exchange markets. On Friday, the US Commerce Department revised upward the annual growth rate for national output after inflation to a fantastic 6.1 percent in the fourth quarter of 1998. It was the fastest pace in 15 years. For 1998 as a whole, US gross domestic product (GDP) - the total national output of goods and services - rose a real 3.9 percent. That's the third straight year with growth above 3 percent. And economists have been boosting their forecasts sharply for 1999. The consensus now calls for still-handsome 2.5 percent growth this year. In Europe, economic growth numbers are being cut. J. Paul Horne, European economist for Salomon Smith Barney in London expects after-inflation growth in the 11 euro-zone economies to run about 1.8 percent this year. By some estimates, Europe's dominant economy, Germany's, shrank at an annual rate of 1.8 percent in the fourth quarter of last year. However, Commerzbank's Mr. Ramm predicts Germany's real growth for all of 1999 will be positive. Germany's unemployment rate stands at 11.7 percent, typical of euro-zone nations. The US jobless rate is a mere 4.6 percent. On Wall Street, Friday's GDP news raised concern that the Federal Reserve might decide to hike interest rates to prevent a renewal of inflation. As a result, bond prices rose and stock prices fell. In Germany, Finance Minister Oskar Lafontaine has been urging the European Central Bank (ECB) to lower interest rates. European politicians "might do themselves a favor" by putting less public pressure on ECB monetary policymakers, says Mr. Horne. The bank, which took over monetary policy from the 11 national central banks at the start of the year, is trying to establish itself as a tough inflation fighter.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Euro Fights for Foothold amid Woes Agenda 2000 Summit in Berlin March 24 to Test European Cooperation on Tough Budgetary Issues
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.