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BRUSSELS : The euro has risen too high against the dollar, EU's Monetary Policy Commissioner Joaquin Almunia said Friday, voicing fears that it could keep climbing.
"The euro has already contributed significantly more than its fair share to the ongoing global adjustment process," said Almunia in a speech delivered in Washington ahead of a meeting there Friday of G7 finance chiefs.
In a discreet call to other major economies, Almunia said the "most prominent issues to be tackled on the international front are the large current account imbalances in the global economy and the risk of their disorderly unwinding."
Despite the fact that the 15-nation eurozone's current account is "broadly balanced," such a disorderly outcome could "disproportionately impact our economy, with the exchange rate appreciating further against the dollar," Almunia said in a speech at the Petersen Institute in Washington that was published in Brussels.
The Group of Seven finance chiefs was to meet in Washington later Friday to tackle the financial market crisis, with exchange rate fluctuations high on the agenda.
The euro hit a record high of 1.5913 against the dollar on Thursday. The exchange rate, which hits European exports while assuaging the rise in dollar-denominated oil, is putting a strain on eurozone policy at a time when inflation is on the rise.
In order to improve the eurozone's clout internationally, Almunia said the euro area should expand and make more use of its ties with strategic partners such as the United States, Japan, China and other emerging economies.
He also argued that "ultimately" "a single euro chair" should take part in international fora such as the IMF and G7 meetings.
Almunina also maintained that eurozone countries "should streamline policy positions and speak with a common voice on global issues" -- a comment bound to raise eurosceptic hackles.
- AFP /ls
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