Commission unconcerned by strong euro

The European Commission has said it is not worried by the strength of the euro, which on Monday morning hit a fresh high of $1.2695 against the dollar.

"We always have the same line as the European Central Bank and the Eurogroup", said a commission spokesman. "We are in favour of a strong and stable euro."

The euro has gained 22 per cent since the beginning of 2003, dampening international exports throughout the year.

Analysts fear the economic rebound in Europe could suffer if the dollar continues to weaken.

And the European Central Bank is also coming under increasing pressure to cut interest rates to ensure continued growth, but has so far insisted that the current two per cent key rate is "appropriate".

The next ECB governor's council takes place on Thursday.

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