The recent political developments in the EU, most notably the rejection of the EU Constitution by French and Dutch votors, have weakened the euro against major currencies by 3-5% in the last few days. Add in the last few months and the euro has decreased by 10% against the US dollar.
This is suberb news for travelers to Europe, especially Americans. Rather than an exchange rate of $1.33 to E1, it is down to nearly $1.2 per E. Thus, your daily expenses (in eurozone countries) are now appreciably cheaper than they would have been just a few months ago. Since I don't expect the euro to remain weak against the dollar for long (because the dollar is in a long term decline against all currencies), I recommend that any of you on the fence about traveling Europe solidify your plans now. Given US economic trends and risks, I would not bet against a Euro to $ exchange rate of $1.4 or even $1.5 in 2006. So go to Europe this year!
As an American in Europe, let me also say that the rejection of the EU Constitution in two countries is a fantastic development for Europeans who are concerned about protecting positive and important aspects of European cultural and economic life, and a strong rejection of a "new Europe" based on a US-style neoliberal economic model which would actually be a regressive step for most European countries. The people, in two Euro countries at least, have spoken - they are smarter than politicians give them credit for and they should be heard. Bravo France and the Netherlands!
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