The Euro has strengthened against the majority of its peers due to a an increase in risk appetite as a result of the European Commission revealed that it will allow some EU member states to ease their austerity measures. The comments raised speculation that the EC is changing its tact when it comes to growth killing austerity measures.
The Commission said that France, Poland, Portugal, the Netherlands, Slovenia and Spain will be allowed more time to complete their austerity plans. In Frances case it will get a further two years to bring its budget deficit down below 3% of GDP.
EC President Manual Barroso said; “Now is the time to step up the fundamental economic reforms that will deliver growth and jobs, which our citizens, especially our young people, anxiously expect.
‘This is the only way to address the two lasting legacies of this crisis – the serious loss of competitiveness in many of our Member States, and persistent unemployment, with all its social consequences.
‘The recommendations issued by the Commission today are part of our comprehensive strategy to move Europe beyond the crisis. They are concrete, realistic, and adapted to the situation of each of our Member States.”
The Commision also annoiunced that Belgium will be given an extra year to sort out its deficit and that it would not be fined for not taking any corrective action in the past. It also said that Italy, Hungary, Latvia, Romania and Lithuania will be released from the Excessive Deficit Procedure due to signs of improvement.
Worryingly however the EC turned its attention to Malta and Slovenia with the latter nation being singled out with nine suggestions. Ominously one of those is the same advice offered to Cyprus prior to the collapse of its banking system.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2957
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8570
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3455
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5951
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7717
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1667
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7432
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6268
(Correct as of 16:05pm GMT)
