Euro in "reasonable" trading range: German Fin Min

By Paul Carrel

BERLIN (BestGrowthStock) – The euro is trading in a “reasonable range,” and markets have accepted the decisions taken by policymakers to support the European single currency, German Finance Minister Wolfgang Schaeuble said on Wednesday.

“The markets have accepted our decision,” Schaeuble told a group of foreign journalists. “The euro has been trading in a reasonable range.”

Schaeuble also said the German economy was on the right path even if economic growth would be a bit lower next year. He said positive economic indicators had shown the German government’s recession-fighting policies were right.

“We’re going in the right direction,” he told the foreign press association (VAP). “We’ve got a good development with the economy and on the labor market. But I’d also like to point out that in the last quarter we had more imports than in any quarter in German history.”

Schaeuble said the growth rates had proven that fears that austerity measures could hit growth were wrong. He said a growth rate of “2 percent or 2.5 percent” this year would still not negate the contraction of about 5 percent in 2009.

“We’re still lower than we were last year. We’ve got to continue working hard,” he said, adding it was vital to reduce excessive public deficits.

“We’re all very pleased about the positive news but we won’t over-estimate it,” he added. “Next year growth will be a bit less than this year.”

(Additional reporting by Erik Kirschbaum; Editing by Susan Fenton)

Euro in "reasonable" trading range: German Fin Min