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BUSINESS: Euro Under Pressure After French 'Non' Vote

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posted on May, 30 2005 @ 06:16 PM
The Euro came under pressure on Monday following the rejection of the proposed EU Constitution by French voters, creating uncertainty over the political future of the European Union. The currency hit a seven month low against the U.S. Dollar in Monday's trading before recovering slightly. The full effect may not be felt until later this week since Wall Street was closed Monday for the Memorial Day national holiday and another referendum vote will be held in the Netherlands on Wednesday.
FRANKFURT While France's rejection of the proposed European Union constitution was a stinging rebuke to its own leaders, it could have even more painful consequences for Europe's economic integration and for the most tangible symbol of that unity: the euro.

By throwing Europe's political future into disarray, analysts said, the vote could undermine the currency's stability - not this week or next, but down the road, as it seeks to expand to more countries.

The euro wobbled in trading on Monday, hitting a seven-month low of $1.246 to the dollar, before closing at $1.247. It has fallen steadily against the dollar in recent weeks, as traders expected a negative vote in France, and steeled themselves for another rejection in the Netherlands on Wednesday.

Please visit the link provided for the complete story.

It seems those waiting for the collapse of the dollar may have to wait a bit longer since it's recovered ground versus the Euro which has fallen from a high of $1.36 in December to $1.247 today. It remains to be seen whether the Euro is going to fall hard over the months, or if it is just taking a breather after perhaps getting a little ahead of itself; however, it looks like the fundamentals have certainly changed from a few months ago.

Related Discussion Threads:
NEWS: France Votes "Non" to EU Constitution, Calls for Chirac to Stand Down
NEWS: Dollar Under Fire
NEWS: Germany, France Want Revised Euro Deficit Plan

[edit on 5/30/2005 by djohnsto77]

posted on May, 30 2005 @ 08:32 PM
Fine by me if it does. I'm travelling to Germany & France in June and could use a price break.

posted on May, 30 2005 @ 09:02 PM
Look at the French Society in Canada (for now)?

They have had two or three separation votes to separate from the rest of Canada and lost all of them.

But as it go's on more and more Canadians leave Quebec which lowers the exit-vote resistance. But apparently that Province of Canada owes the Federal Government of Canada about 22 Billion.

So Some Canadians believe Canada will be better served to receive their Quebec's debt in full and if they can vote separation after repayment then goodbye and good-luck. Of course the US has already indicated NAFTA (North American Free Trade Agreement) will NOT apply to a separated Candian State, ie Province of Quebec.


posted on May, 31 2005 @ 12:20 PM
The vote failed bacuse the EU "constitution" didn't preserve French sovereignity enough. If it supported French soveriegn rights at the expense of others, then it would have passed. The French, from the admittedly few I know well, are quite nationalistic, and patriotic. Most can't stand their current government and his twenty-something-odd unemployment rate while he's out trying to consolidate some giant international cartel at the expens of his own people.

I'm glad in a way. Until the EU creates a real constitution that is designed to protect the rights and abilities of the citizenry instead of preserving the means to make the rich even richer, then hopefully it will keep failing. Also, as long as the EU doesn't solidify, there will be less chance of the rich families here pushing for larger expansions of NAFTA, into Central and SOuth America. If everyone who preaches of diversity above all else truly believed that, then they'd see this congomeration of business interests, thinly disguised as government, for the detriment to society and life that it truly is.

The EU: good concept, bad implementation. It's not being assembled for the people. As soon as it truly is, then look out world.

posted on Jun, 4 2005 @ 03:25 AM
The Euro has continued its slide all week, ending at $1.2227, only a bit higher than the $1.2157 eight-month low hit earlier in the week.

posted on Jun, 4 2005 @ 11:15 PM
I love this. I can't describe how funny it's been lately to watch the American right support the left wing of France and Denmark.

Really, it's been a rare lesson in not knowing your arse from your elbow.

I know this thread isn't exactly about the whole thing but it's as much of a misguided triumphant fart as the rest.




I'm still laughing thinking about it.

The vote in France was basically against (apart from revenge votes based on domestic policies) The vast promotion of US style free market capitalism in Europe. The French stood up for the people. (you remember the people, they're those folk you probably live with and work beside everyday; Unless of course you live in a "community" surrounded by barbed wire, protected by armed guards, dogs and gates like something out of Greek mythology) and against the encroachment of Big Business into the everyday ruling of everyone's lives. They voted no to increased Americanisation, not to increased Europeanisation.

It's hilarious seeing this lapped up by the Republicans amoungst us though.

The funniest thing is, this basically changes nothing except the next constitution is going to have to take into account a lot more of what I suppose the US would call the "socialist" values of the European people.

While the US right wing applauds all the way.

Oh yeah, just to be on topic, weak US payroll figures have alreadly helped the Euro's recovery.

Seriously though, thanks for the laughs.

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