EU businesses call on economy chiefs to push China to allow yuan to appreciate vs euro
Associated Press
11/25/09 9:40 AM PST
BRUSSELS — European businesses called Wednesday on EU economy officials to push China to allow their currency rise against the euro, saying the strong euro could hurt Europe's economic recovery.
European Central Bank President Jean-Claude Trichet, EU Economy Commissioner Joaquin Almunia and Luxembourg Prime Minister Jean-Claude Juncker, who heads economy talks between the 16 nations that use the euro, will meet Chinese economy officials in Nanjing, China on Nov. 28-29.
BusinessEurope, which represents most European companies, called on them to hold an "open and frank" debate on how China should consider allowing the renminbi to appreciate against the euro.
It said China's fixed exchange rates and the weak U.S. dollar "risks shifting the burden of future exchange rate adjustments on to the EU's shoulders."
A stronger euro makes European goods more expensive for dollar-based importers in the U.S. and in Asia. EU nations such as Germany depend largely on exports to drive economic growth.
