Germany rejected on Friday a call from France for the eurozone to manage its exchange rate, with Chancellor Angela Merkel's spokesman denying the euro was over-valued. "Exchange rates ought to reflect fundamental economic data and flexible rates are best suited to that," said deputy government spokesman Georg Streiter. "Exchange rate policy is not a suitable method to increase the competitiveness of economies."
He added, "The federal government takes the view that the euro is not overvalued. The recent rise in the euro is merely a counter-movement to the massive devaluation that was part of the crisis in the eurozone." Asked if this was a riposte to remarks by French President Francois Hollande, Streiter said, "I think I've expressed it very clearly."
Hollande, fearing that the rising value of the euro could damage the currency bloc's recovery, told the European Parliament in Strasbourg Tuesday that "the euro should not fluctuate according to the mood of the markets."