Reduced to £ sparked fears about the euro on the continent. According to rumors, the United Kingdom is looking for a way to gain competitive advantage over its European partners. Since autumn 2007, the pound has lost 25% of the cost. Question: if the UK its currency collapse in order to help their exporters while the euro fall in the increasingly deep recession?
French Finance Minister Christine Lagar stated that the «big twenty» last week promised that minimize any negative impact of domestic policies on trade and investment, says Case.
The European Central Bank, which rarely comments on exchange rates, also warned the country that they maintain their currency. One of the directors of the ECB Lorenzo Bini Smaga reminded the EU that they are «general interest» is to maintain its currency.
«The question arises - can a single market to function in an environment where the exchange rate drops», - he said.
He voiced the possible actions the ECB in order to correct the deviation of the exchange rate, allowing intervention in the currency market.
A source in the EU reported that Britain is unable to retain the rate of their currency.
Irish Finance Minister Brian Lenihan, in January, directly accused the UK in a policy of «competitive devaluation», substituting for the rest of the «great pressure».
Lagar, in turn, do not claim that Britain manipulating exchange rates. «I would not let that happen, even at a fraction of a second», - she said.
However, there is the view that Britain has obligations to the European partners, which should support its currency. «Bank of England has an interest to ensure that a little more support», - said Lagar three months ago.
Europe worries about the pound sterling were met by London without a proper understanding. Casually refer to the British pound since their currency has been ejected from the European foreign exchange market in 1992.
But in recent months, the British currency has stabilized, and now the Bank of England sees the benefits of a lower exchange rate - not the growth of exports and falling imports, which could positively affect economic growth.
French Finance Minister Christine Lagar stated that the «big twenty» last week promised that minimize any negative impact of domestic policies on trade and investment, says Case.
The European Central Bank, which rarely comments on exchange rates, also warned the country that they maintain their currency. One of the directors of the ECB Lorenzo Bini Smaga reminded the EU that they are «general interest» is to maintain its currency.
«The question arises - can a single market to function in an environment where the exchange rate drops», - he said.
He voiced the possible actions the ECB in order to correct the deviation of the exchange rate, allowing intervention in the currency market.
A source in the EU reported that Britain is unable to retain the rate of their currency.
Irish Finance Minister Brian Lenihan, in January, directly accused the UK in a policy of «competitive devaluation», substituting for the rest of the «great pressure».
Lagar, in turn, do not claim that Britain manipulating exchange rates. «I would not let that happen, even at a fraction of a second», - she said.
However, there is the view that Britain has obligations to the European partners, which should support its currency. «Bank of England has an interest to ensure that a little more support», - said Lagar three months ago.
Europe worries about the pound sterling were met by London without a proper understanding. Casually refer to the British pound since their currency has been ejected from the European foreign exchange market in 1992.
But in recent months, the British currency has stabilized, and now the Bank of England sees the benefits of a lower exchange rate - not the growth of exports and falling imports, which could positively affect economic growth.
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