A Weakening Euro Could Now Be Good For Eurozone By Inciting Export Growth (1/11)     Print Email
Natalie Fahey

Despite the sovereign debt woes of some countries in the eurozone, the euro currency itself has stood up strongly (surprising so to many) in currency markets, particularly against the dollar. That rate has changed in recent weeks, in favor of the dollar: the euro has now depreciated by nearly 10 percent against the dollar. The falling euro's international value could make European exports more competitive globally, particularly those of Germany and Italy. The euro has been "devalued" slightly in currency markets as (1) the U.S. economy has shown signs of revival and as (2) the European Central Bank's policy of maintaining very low interest rates under the bank's new head, Mario Draghi.  If it lasts for six months, a euro "devaluation" of this sort could add a point economic growth in some eurozone countries (and also make existing loans a little cheaper to pay off), analysts say. That, in turn, could spare the EU as a whole from sinking back into recession and facilitate the reform process in troubled eurozone economies such as convalescent Italy.


By European Affairs
 
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    By Patricia Paoletta, Washington DC

    You may have heard that the United States is in “a Race to 5G.” 5G—or the Fifth Generation of wireless broadband—will be 100x faster than 4G, connect up to 100x more devices, and be 5x more responsive through lower latency. 5G is expected to connect people, things, transport systems, and cities in smart-networked, always-on environments. 5G will transport a huge amount of content much faster, reliably connect millions of devices, and process very high volumes of data with minimal delay.

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UMD Jean Monnet Research Project

The University of Maryland has received a Jean Monnet grant from the EU to conduct a series of policy exchanges between Europe and the US on filling infrastructure needs and the utility of public/private partnerships as the financing mechanism. If interested in participating in or receiving more information about these exchanges, please contact Rye McKenzie (rmckenzi@umd.edu).

New from the Bertelsmann Foundation

The Bertelsmann Foundation is an independent, nonpartisan and nonprofit think tank in Washington, DC with a transatlantic perspective on global challenges.

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