President Macron raises the issue of responding to the euro's appreciation at the EU summit

As the euro continues to strengthen against the dollar, this currency trend is expected to be a key topic at next week’s EU summit. French President Emmanuel Macron is reported by Jin10 to plan to address this issue during a private session on Thursday as part of strategic discussions aimed at enhancing the overall economic competitiveness of the EU.

The Dual Impact of Euro Strengthening on the Economy

Currency fluctuations are having complex effects on Europe’s economy. An appreciating euro may pose challenges for EU exporters by reducing their price competitiveness. This could act as a constraint on overall economic growth. Conversely, a stronger euro also reduces import costs, contributing to price stability for consumer goods.

ECB Inflation Outlook and Challenges in Strengthening EU Competitiveness

The European Central Bank (ECB) currently forecasts inflation rates below 2% for this year and the next, which is recognized as a significant risk factor for euro appreciation. Macron’s decision to raise this issue reflects a strategic need to maintain industrial competitiveness across the EU while coordinating with monetary policy. In a low-inflation environment, currency appreciation can impose constraints on sectors heavily reliant on exports, necessitating the development of common responses at the EU summit.