Published by Global Banking & Finance Review®
Posted on October 28, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleECB's Panetta warns that euro appreciation is eroding EU competitiveness, with Chinese exports increasingly targeting EU markets.
ROME (Reuters) -The appreciation of the euro is significantly eroding the price competitiveness of European products, the European Central Bank's governing council member Fabio Panetta said on Tuesday.
Addressing a financial conference in Rome, Panetta said falling Chinese exports to U.S. and increasing exports to the EU were confirming the risk of a "broad redirection" of Chinese production towards EU markets.
(Reporting by Giuseppe Fonte, editing by Alvise Armellini)
The euro is the official currency of the Eurozone, which includes 19 of the 27 member states of the European Union. It is used by over 340 million Europeans and is one of the world's most traded currencies.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Price competitiveness refers to the ability of a country's products to compete in the market based on price. It is influenced by factors such as currency value, production costs, and market demand.
The European Central Bank (ECB) is responsible for managing the euro and formulating monetary policy for the Eurozone, aiming to maintain price stability and support the economic policies of the EU.
Foreign currency exchanges are platforms where currencies are traded. They facilitate the conversion of one currency into another, impacting international trade and investment.
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