pte050530037 Commerce/Services
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Euro falls after France's 'non'
A reform is in order, says Seilliere, to boost France's 'weakened' economy
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Paris
(pte/May 30, 2005/14:05) -
The resounding French 'non' to the European constitution has sent the Euro a-plunging to a seven-month low: down 0.33 per cent to $1.25.
President of Medef - Informations du Mouvement des Entreprises de France - http://www.medefinternational.fr - Ernest-Antoine Seilliere said that the vote "weakens the French economy, France and Europe". The danger being, he said, that pro-business reforms might stall and leave France uncompetitive.
Although the 'no' vote was anticipated, "the size of the rejection will cause a government crisis in France," said Armin Mekelburg, of Munich-based Hypovereinsbank.
The effect of France's decision on the constitution has had an inevitable downward effect on the euro, however experts say that the euro is currently low due to a string of recent interest rate rises in the Unites States.
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