EU has right to debate ECB monetary policy-France
BRUSSELS, July 15 (Reuters) - European Union countries have the right to discuss European Central Bank monetary policy and that does not mean they are questioning the bank's independence, French Economy Minister Christine Lagarde said on Tuesday.
Lagarde, whose country holds the rotating EU presidency, said French President Nicolas Sarkozy never wanted to challenge ECB independence when he asked at the European Parliament last week whether the bank's recent rate rise was reasonable.
"I don't think he ever wanted to in any way challenge the independence of the European Central Bank," Lagarde told the parliament's economic committee.
"I think he understands and respects the independence of the ECB ... That being said, it would be legitimate for member states to also have an opportunity to express their point of view, to have a dialogue with the ECB, because they've got policy considerations as well to which they need to give voice."
The ECB raised interest rates by 25 basis points to 4.25 percent at the start of July to better anchor inflation expectations at a time of high fuel and food costs, which pushed euro zone inflation to a record 4 percent annually in June.
The rate rise added to upward pressure on the euro, which on Tuesday traded around $1.60, just below a record $1.6018.
France and European business organisations have long criticised the negative impact of the currency strength on exports from the 15-country euro area.
Asked to comment on the euro's climb, Lagarde told reporters: "The euro is very high."
Asked if the euro's strength was worrying, she said: Continued...
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