Growing tensions in the EU?

The economy has emerged from the longest-ever recession, the Euro is trading around 1.35 against the Dollar, the situation in the 17-nation bloc seems to be finally improving. Despite record high unemployment and risks of deflation, many analysts are saying the worse is over. On Thursday the ECB is gathering to decide whether to cut the benchmark interest rate, to assure a long-term sustained recovery, or they should announce any other tools of stimulation, or simply remain in a "wait-and-see" mode. Despite obvious signs of improvement, politicians and policymakers all over Europe are starting to express their concerns over Euro's high exchange rate. Hence, in October 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. Following these comments, Italian Finance Minister Fabrizio Saccomanni joined his colleague and called the ECB to cut its benchmark interest rate to ease risks the currency poses to the fragile economy. The Euro has advanced more than 2% this year so far, and at the end of October, the EUR/USD hit a two-year high. Most of decisions in Europe are made by unanimity, so each country has veto power, which, according to Italian Fin Min is not a very efficient. Though Saccomanni backs banking union, he also calls for sovereign bond issuance in the future as one of the part of economic and monetary union's integration process. Hence, he suggests concrete actions are needed, instead of leaving investors with forward guidance.