, Columnist
A Strong Euro Isn’t What the Doctor Ordered
With US tariffs on the table, the currency’s gain is an unwelcome headwind.
Proponents of a strong euro need to be careful what they wish for. If the common currency strengthens much more, it's going to choke off the euro area’s economic recovery — anemic though it’s likely to be — before it can get going.
If experience over the last decade holds true, a too-strong euro is the last thing the euro area needs. Former European Central Bank President Mario Draghi always tried to avoid mentioning currency strength but was forced to address it in 2014, 2017 and again in 2018. However, it's his most recent foreboding intervention on the "Future of European Competitiveness" that's most relevant now.