- Arnaud Montebourg, French Industry Minister
With the Euro trading versus the United States Dollar around this year's high, European exporters may start to suffer from the strong single currency, posing a threat to region's recovery. Furthermore, on November 7 the European Central Bank is gathering to decide whether to make any further adjustments to its policy or stay pat and see how effects of previous reductions are spreading through the economy. According to the majority of analysts, Mario Draghi will refrain from any additional stimulus measures. However, French Industry Minister Arnaud Montebourg said the ECB should lower the Euro's exchange rate versus the greenback as such measure could help the French economy. According to their projections, a 10% in single currency's value would add extra 1.2% to GDP, create 120,000 new jobs and cut the deficit by 12 billion euros. In addition to that a 20% depreciation, France will create 300,000 working places and deficit will reduces by 30%.
French economy gained momentum in the second quarter, expanding 0.5%, entering growth after a period of contraction for two consecutive quarters. Despite the ongoing recovery in the 17-nation bloc, the Bank of France downgraded its growth forecast for the third quarter, citing business mood indicators that stagnated in September. Currently, the central bank expects a 0.1% growth, down from 0.2% quarterly rate estimated on September 9.
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