New EU agreement behind fall in euro

THE euro fell against the dollar last week, partly because of rising US interest rates, but also due to an agreement struck by EU finance ministers last weekend.

Consensus has finally been reached on the reform of the stability and growth pact (SGP) which governs the spending and borrowing of Eurozone member states.

Under the old SGP, member states were required to keep budget deficits under 3% of national GDP, with limited exceptions.