OECD's Cotis sees 'no macroeconomic rationale' for any further euro rise

0 Comments | AFP, May, 2005

PARIS (AFP) — OECD chief economist Jean-Philippe Cotis has said there was "no macroeconomic rationale" for any further appreciation of the euro.

"This is the weakest economic area. Why should it have the strongest currency?" Cotis told reporters Monday.

He said any downward revision of the Organization for Economic Cooperation and Development's economic growth forecasts for 2005 would be "sharpest for the eurozone".

Economic activity in the 12-nation eurozone is "having trouble restarting", he said, adding that the bloc was "much more fragile than the rest of the OECD", a 30-member body that groups leading free-market industrialized economies.

Cotis said the "extreme volatility" of oil prices was depressing consumer and business confidence.

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