MADRID, Nov 26, 2007 (AFP) - The dollar's weakness is a problem for the world economy while the euro's strength reflects confidence in the European economy, European Commission President Jose Manuel Barroso said in an interview published Monday.
"The fact that the euro reached such a level reflects the confidence in the European economy..," he told the Cinco Dias newspaper. "What is a problem, without any doubt, is the weakness of the dollar."
"That concerns certain sectors of the economy, not only European, but in the world," he said.
The interview took place on November 20, when the euro was around 1.47 dollars, the paper said.
On Friday, the euro neared the 1.50 dollars for the first time after reaching a fresh historic high of 1.4967 against the US currency, which is suffering from expectations of slower economic growth and more rate cuts. Early Monday, the dollar was at 1.4808 euros.
Barroso said he had "total respect for the independance of the European Central Bank" and "total support for the ECB's reaction to the recent turbulence on financial markets."
The bank has carried out several high-profile and controversial operations since financial markets were hit by turbulence following the collapse of the US market for high risk mortgages.
The moves were aimed at ensuring that credit markets crucial to the global economy functioned smoothly.
Barroso rejected suggestions that the strong euro was hurting European exports.
"The argument about the damage to exports caused by the level of the euro is not still valid," he said.
German exports are very high, "which indicates that there are other factors, in addition to the exchange rate, that have an influence," he said.
"It is with China that we have a trade balance problem."
A "troika" of the eurozone's economic policy chiefs -- ECB chief Jean-Claude Trichet, chairman of the Eurogroup of finance ministers Jean-Claude Juncker and EU Economic Affairs Commissioner Joaquin Almunia -- are to visit Beijing on Tuesday to discuss China's booming exports and state-controlled exchange rates.
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