Airbus Chief Calls for Weaker Euro
The European Central Bank (ECB) should take steps to devalue the common European currency to help the region’s exporters who are being hit by a strong euro, says the chief executive (CEO) of planemaker Airbus.
In an interview with German business daily Handelsblatt, Fabrice Bregier said: “It [the ECB] should do what the Japanese did last year and what the Americans have been doing the whole time… It is not fate that the euro shoots through the roof while the American and Japanese use their currencies to support industry.
“I am not talking about a huge devaluation, I am talking about 10%,” Bregier said, adding that all European exporters could live more easily with a euro exchange rate of $1.20 to $1.25, against the current rate of about $1.36.
Bregier was also interviewed by the Financial Times and told the paper: “[Europe] cannot be the only economic zone of the world that doesn’t consider its currency as a weapon…as a key asset to promote its economy.”
Airbus, which sells its aircraft in dollars but incurs costs in euros, is one of the most exposed groups in Europe to a strong single currency. However, many economists believe that the euro is unlikely to depreciate against the dollar considerably unless the ECB embarks on a programme of quantitative easing (QE).