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Euro Has A 'Valuation Problem', Merkel Says

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

German Chancellor Angela Merkel said on Saturday that there was a "valuation problem" with the euro and it was beyond the influence of her government as monetary policy is set for the entire euro area that has 19 member states.

Responding to reporters' questions at the Munich Security Conference, Merkel said the European Central Bank sets monetary policy not for Germany but for countries from Portugal to Slovenia.

"If we still had the Deutsche mark it would be valued differently than the euro is currently," she said.

"But this is an independent monetary policy over which I have zero influence as German chancellor."

U.S. President Donald Trump recently criticized Germany's record trade surplus, saying that the number of Mercedes-Benz cars on the Fifth Avenue where the Trump Tower is situated, suggested the country enjoyed an unfair trade advantage.

Peter Navarro, the head of Trump's National Trade Council, also accused Germany of profiting from a weak euro.

Asked about such remarks, Merkel drew attention to the number of iphones and Apple gadgets that was in use in at the event where the U.S. Vice President Mike Pence was also present.

"If you look around and see how many iPhones and Apple products are in play here, then the vice president ought to be completely satisfied," Merkel said. "Fifth Avenue is, I think, still not crowded with German cars."

Germany's trade surplus hit a record high of EUR 252.9 billion in 2016, clearly exceeding the previous peak of EUR 244.3 billion achieved in 2015. Exports expanded 1.2 percent and imports gained 0.6 percent.

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