September 4, 1992
In just over two weeks, French voters will decide whether the dream of European monetary union lives or dies. Yesterday, bargain hunters in European bond markets decided to bet that it would survive.That bet sent the prices of bonds denominated in European currency units, known as ECUs, up sharply for the first time in months. That market, into which investors were piling as recently as this spring, had almost collapsed.Yesterday's rapid price increase drove the yield on the Paribas 10-year ECU bond index down to 9.65 percent from 9.85 percent Tuesday, according to Deutsche Bank.
August 26, 1992
NEW YORK -- The dollar fell to a new low yesterday against the German mark amid signs that U.S. consumers have become less confident about their economic future and that French voters might reject the European monetary union.The dollar finished at 1.3998 German marks, down from Monday's close of 1.4021 marks.The dollar weakened after the Conference Board reported an unexpected drop in its index of consumer confidence, to 58 in August from 61 in July.Shortly afterward, the dollar tumbled to a record low of 1.3955 marks after several opinion polls suggested that French voters are narrowly divided on the Maastricht treaty for European monetary union.
July 20, 1997
AMERICAN TOURISTS in Europe find their dollars going further than expected. But American exporters face a daunting challenge as the prices they must charge for goods rise above competitors'.That's the good news/bad news of the surge in the dollar against European currencies, especially the Deutsche mark. Going on since February, when the Group of Seven finance ministers implied they were halting this trend, it spiked last Monday. At least the dollar has not been gaining recently on the Japanese yen, as it was in the past year to the detriment of U.S. trade and payments balances.
February 7, 1993
Entreaties from Washington and Wall Street meant nothing. When Germany's cantankerous Bundesbank decided to lower its interest rates Thursday, it did so for reasons strictly European and domestic. These reasons will not go away because of the marginal reductions. Look for further cuts in which the sluggish American recovery will be a decided beneficiary.It is fruitless to figure what factor finally impelled the German central bank to act. Probably it was a convergence of two forces generating pressures that could not be denied.
January 6, 1999
PARIS -- The arrival of a common European currency is a watershed in the relationship of the United States to the new Europe.It is the most important event for European integration since the Treaties of Rome in 1957. It promises to be the most important event for the United States since Communism collapsed.Since 1989, the United States has been, in economic and military terms, the most powerful state in the world. Washington has imagined no serious challenge to American power until the distant future.
December 6, 1995
PARIS HAS COME TO A HALT and France to paralysis in a brutal confrontation between the 1990s and the 1960s, the new right and old left, the future and the past. In the interest of European monetary union, a strong French economy and a healthy Europe, President Jacques Chirac should prevail in this struggle. He may not.The French people, having elected Mr. Chirac in May, don't much like him. He campaigned promising lower taxes and more jobs only to see the priority, once in office, for higher taxes, reduced health benefits and cutbacks of cushy perquisites for public sector workers.