The Euro reaches a new record high

Author: Rosa Maria Young

For those Americans who were dreaming about a summer vacation in Europe this news is not too rosy. Facing the fears over the American economy just before the G7 meeting of the finance ministers, yesterday morning at 11:15 (Paris time) or 5:15 am (New York time) the Euro reached a new record: 1 Euro = $1.5913!

In the opinion of the European Central Bank and the politicians in charge of the finances, even if the economy in Europe is slowing down, it still has a certain resistance while it is widely considered that the United States is about to enter a recession. Eight months into the global credit crisis and with the European Union facing the threat of rising inflation together with the financial turbulence of the moment the European Central Bank (BCE) has not changed its interest rates of 4% as of April 10th, 2008. This is a large difference compared to the US where the Federal Reserve Bank (Fed) has been slashing rates to 2.25% and the possibility that they could still go down is still around.

All this translates into the need of planning very carefully the European itinerary of those who still plan to visit Europe. For the lucky ones who planned months ago and bought their plane tickets and hotel reservations ahead, all they need now is to control carefully their purse once across the Atlantic. Looking for places to eat where the locals go, checking the prices for entrance in museums for groups or seniors and if you happen to go to France thinking about traveling by train if you are over 60 as there is a 25% discount. And if even so you think it is going to be to expensive, think about visiting those countries which are not still in the Euro zone….