The euro as the world reserve currency has diminished attractiveness

Chinese Academy of Social Sciences Academy member of Cass, Institute of world economy and politics in the original Barron, Director of the Valley, said the European debt crisis, EUR/USD exchange rate had a free fall, the euro as the world reserve currency has diminished attractiveness.

Valley Barron said that currently support the euro as the world reserve currency of the three principles were breakthroughs. These three principles are the EU and the euro area's budget deficit cannot exceed 3% of GDP, debt scale must not exceed 60% of the EU district, a Member State a debt crisis that other Member State cannot use taxpayer money to rescue; European Central Bank will not be able to buy European government bonds, and now the European Governments of bonds are purchased by the European Central Bank.

In this forum, Institute of Ministry of finance considers, in this gukang European debt crisis, better exposed the European Monetary Union of the inherent contradictions. That is, in monetary form after reunification, fiscal policy is not uniform. EU Member States, two line failure. In accordance with the provisions of the EU and the euro area's budget deficit cannot exceed 3% of GDP, debt scale must not exceed 60%. But now the EU Member States average deficit rate rose to 6 per cent of debt to GDP ratio increased to an average of 85% or more. France two indicators are at the top of the line of control, Germany is also one of the indicators is beyond the control of the line.