ECB Governing Council Member Wunsch: If the euro wants to improve its global status, it must accept a strong exchange rate.

European Central Bank board member Pierre Wunsch recently stated in an interview in Brussels that if Europe wants to enhance the global status of the euro, it must be prepared for a stronger euro. "If we want the euro to play a more important role globally, the euro exchange rate may further appreciate," the Belgian central bank governor bluntly stated. He also raised a key question: "If we are already concerned about the recent rise of the euro, do we still expect the euro to significantly increase its international influence? I am not sure about this." Currently, European officials are trying to take advantage of Trump's criticism of global trade and US institutions to strengthen the international position of the euro, allowing the euro area to enjoy many privileges previously held only by the dollar. However, some people worry that this strategy may push up the euro exchange rate, thereby affecting exporters and the overall economy. At last month's Eurozone finance ministers meeting, France urged an assessment of related risks, while ECB President Lagarde tried to downplay such concerns. Wunsch admitted that there is a connection between the international status of the euro and its exchange rate, but he is not panicking about the recent rise of the euro. He pointed out that the euro-to-dollar exchange rate has historically approached the 1.60 mark, and evaluating the strength of the euro "cannot only look at the exchange rate against the dollar, but also needs to consider the effective exchange rate of the euro against other major currencies globally." Regarding the unchanged interest rate policy since June last year, Wunsch stated that there will not be any hasty judgments made about the trigger conditions for adjusting the interest rates in the short term. He reiterated that it is still too early to assess the impact of the Iran conflict on the economy and monetary policy, but this conflict "is likely to push up energy prices." "Therefore, we must consider: how do we respond if inflation rises again?" On the issue of joint financing for increasing defense spending in Europe, Wunsch maintains a cautiously open attitude. "More important than joint financing is the integration of Europe's defense industry - of course, we are aware that this is not an easy task," he added, "but if political arrangements can be made to have some military expenses coordinated at the European level, why not?"