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Signs of the EU Wanting to Devalue the Euro




The strong euro hurts exports, thus the international competitiveness of the euro zone. The effects also propagate to non-eurozone European states.

There are increasingly more voices calling for a weaker euro. France is among the countries wanting to weaken the euro (source: Merco Press).

To Germany, theoretically a weaker euro would come as a helper - the country is heavily reliant on industrial production and it's in fact the biggest industrial producer of Europe.

So far, the euro has been gaining strength - the inflation rates decreased during late 2012 and early 2013. In January 2013 the euro's inflation rate dropped below 2 %, while in late 2011 it has been 3 % exactly.

Here's a detailed histogram of the euro's inflation rate during recent years.

With the global economic crisis pushing industrial production down and diminishing the German GDP, the eurozone might want to inflate the common currency in order to keep up with the US dollar's recent spike.

Various voices belonging to politicians and economists have been calling for a euro devaluation - some suggested a 30-40 % inflation would be "needed", but the European Central Bank has so far been reluctant on weakening the common currency.





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