Solbes concerned on ascent of euro

European Economic and Monetary Affairs Commissioner Pedro Solbes said today that the continuing strengthening of the euro could affect business confidence in the euro zone.

Speaking at a conference in Madrid he said: "the strong appreciation of the euro, if it continues, could entail a decline in the confidence of company bosses and reduce the competitiveness of the euro zone".

The single currency has risen sharply against the dollar this year, fueling concern that the trend could make eurozone exports less competitive.

Solbes pointed out it will be crucial that domestic demand increases to replace any fall in demand for exports.