Speaking from the General Motors factory in the French city of Strasbourg on Thursday, the minister said the US “absolutely had to understand” that coordinated international management was needed.
“If we stay in the current situation, it’s possible to imagine a catastrophic situation at world level, for the Europeans who have an over-valued currency, for the Asians who hold assets in dollars and for the Americans because long-term interest rates will rise,” said Gaymard.
Referring to the “inter-penetration” of economies, he said that “today many jobs in the United States depend on the good health of European groups”.
Gaymard said that the G7 meeting in London in February was important, and that he would repeat his warning there.
The dollar’s plunge has put huge
The minister also said he hoped that the problem would be recognised more quickly than had been the case when the dollar slumped at the beginning of the 1980s.
“It is not possible to do something if the triangle of Europe, the United States and Asia does not act together in close coordination,” he said.
A statement by the Eurogroup of eurozone finance ministers on exchange rate issues had been very important, he said. “We are following the matter with great attention and concern.”
The Eurogroup, in a statement at the beginning of December, had urged leading countries to take all appropriate measures to reduce those world economic imbalances which were causing the dollar to fall and the euro to rise.