Europe must be prepared for a strengthening of its currency if it hopes to enhance the euro's global role, stated Pierre Wunsch, a member of the Governing Council of the European Central Bank.

He stated that enhancing the euro's international status could be accompanied by a further appreciation of the currency. This scenario raises concerns among exporting countries, including France, as a strong currency could reduce the competitiveness of their goods on global markets.

Banque de France Governor François Villeroy de Galhau noted that the situation on currency markets has changed in recent days due to the conflict in the Middle East. While the risk of excessive strengthening of the euro and a weakening of the dollar had previously been discussed, the US dollar is now strengthening again, regaining its status as a safe haven asset.

Pierre Wunsch also emphasized that a military conflict could lead to higher energy prices, which would put pressure on inflation. At the same time, he expressed skepticism about the idea of ​​immediately issuing common European bonds to finance defense, stating that the European Union should first focus on consolidating its own defense industry.