LONDON (MarketWatch) -- The euro could suffer if members of the single-currency area don't respect the European Union's stability and growth pact, which requires governments to keep budget deficits below 3% of gross domestic product except in extreme circumstances. "Germany, as a member of the E.U., has a massive interest in the credibility of the stability and growth pact, which as you know is not taken so seriously by some," Steinbrueck said in a speech to parliament in Berlin, according to Reuters. "If it is not taken seriously, I am telling you, the euro will have trouble one day in terms of its own credibility and stability." The euro slumped versus the dollar to trade at $1.3453, down 0.6% on the day. http://www.marketwatch.com/news/sto...1A-C22C-4DA8-AC12-8AC1529FCF88}&dist=hplatest Thank you for the warning, Mr. Steinbrueck !
A slumping EUR would be a gift sent from heaven for export heavy Germany. Steinbrueck knows that. The more it tumbles the less industries he has to bail out. His lamenting is not to be taken seriously.
Let Moodys do the job. They are better in "lamenting". "Eastern Europe debt default rate likely to raise above 25 % - says Moodys "would be an appropriate "headline".