German unions call for ECB to act on euro

14 Nov, 2004

The European Central Bank must take action on the euro's surge against the dollar or thousands of jobs could be lost in Germany, the head of the country's DGB trades union federation was quoted as saying on Saturday.
Writing in Germany's "Bild am Sonntag" newspaper, DGB head Michael Sommer said the ECB and the German government were failing to respond to the challenges posed by the euro's rise, which saw the single currency breach $1.30 last week.
"The ECB must quickly get the euro to a sensible level against the dollar," Sommer said, according to an advance copy of an article due to be published on Sunday.
"Investment programmes and a monetary policy appropriate for the economy like in the USA are taboo with us," he added.
"Thousands of jobs and the economy are now in danger here," said Sommer. "Our currency has been targeted by speculators who drive up the exchange rate to make money."
"For the long run we also need (a means of) international management for exchange rates - that's the only way we can put paid to speculators in a lasting way," Sommer said.
Rising unemployment has been blamed for dampening consumer spending in Europe's largest economy. The economy is expected to grow around 1.8 percent this year, its fastest rate since 2000, chiefly thanks to strong foreign demand for German goods.

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