German Chancellor Friedrich Merz has expressed concern over the rapid decline in the value of the American currency, which is creating additional pressure on European exporters. Amid statements by US President Donald Trump that the low value of the dollar is "great" for business, the German government insists on an immediate increase in EU competitiveness. This is reported by Bloomberg, writes UNN.
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In recent weeks, the euro has surpassed the psychological mark of $1.20, a result of the deepest fall of the American currency since 2022. Merz emphasized that this situation is a direct challenge for German industry, which is critically dependent on external markets.
I have been watching the development of the dollar exchange rate with concern for quite some time
According to him, the current exchange rate is "a significant additional burden for the German export industry," and Economy Minister Kateryna Reiche added that every strengthening of the euro "is equivalent to a kind of additional customs duty."
Protection of trade agreements and pressure over Greenland
The situation is complicated by ongoing tensions between Brussels and Washington. The European Parliament suspended the ratification of a trade agreement with the US in response to Trump's threats to impose tariffs on countries that did not support his plans to control Greenland. Merz called on the American administration to adhere to the agreements reached in the summer of 2025, as uncertainty harms investments.
We will have to assert ourselves globally against a weak dollar and a strong euro. We simply must become more competitive and stronger, especially given the exchange rates.
Currently, the European Central Bank is also studying the impact of an expensive currency on inflation and economic growth, preparing for possible adjustments to monetary policy.