French President Nicolas Sarkozy has urged an end to the US dollar's predominance, warning that its weakness poses an 'unacceptable' threat to European competitiveness.
'The monetary disorder has become unacceptable,' said Sarkozy. 'The world is multi-polar, the monetary system must become multi-monetary,' he added.
The dollar has weakened considerably against the euro in the past year as optimism for economic recovery has grown, making euro-priced exports more expensive and putting euro zone producers at a competitive disadvantage.
Sarkozy had said on Wednesday that the dollar's weakness posed a 'considerable' problem for French businesses and should be 'at the centre of international debate'. His comments today came in a speech to a Paris conference on new approaches to capitalism.
During the financial crisis, Sarkozy has taken a harsh stance against freewheeling capitalist practices and pushed hard for a stricter line on bank regulation and tax evasion. He has said he planned to work to transform the international monetary system when France takes over the leadership of the G20 nations in 2011.
