The President of France thinks he can have his cake and eat it too. He called on government leaders to agree on a target for the euro’s exchange rate over the medium-term, warning that the rising currency may deepen the recession. That much is true. He also said:
“The eurozone must, through its heads of state and government decide on a medium-term exchange rate”.
“We can’t let the euro fluctuate according to the mood of the market.”
He still thinks that government can control and dictate everything even though the underlying economic conditions are falling apart. He added that the exchange rate should not be set artificially but that the eurozone should act on global markets to protect its interests. He went even further stating that “Governments must decide exchange rates”.
Governments are still in denial. They honestly believe they can control everything by simple decree. To them, the free markets are the enemy. This can only lead to less and less freedom.