The German government answers to the French president Francois hollande, which yesterday had proposed relaunching the European economy by devaluing the euro at exchange rate levels deemed more realistic. According to a Berlin spokesman, however, "the euro is not overvalued' and, on the contrary, its strength represents"a sign of the return of confidence in the Eurozone”.
For the executive led by Merkel, therefore, the exchange rate policy "is not an adequate instrument to strengthen the competitiveness" of the euro area.
