Growth Pact needs immediate reform

The euro is currently worth $1.15. If you knew nothing of the current global economic situation, but thought that free markets fairly determine foreign exchange rates, you might reasonably conclude that the Eurozone was economically stronger than the US.

However, the reality is somewhat different. In economic terms, American GDP growth this year will probably be three times stronger than euro area GDP growth.

The dollar has remained weak in a post-war market because America’s monetary authorities want it to. While US Treasury officials continue to state that they want a strong-dollar, their actions speak louder than their words.