Because the purchasing power of the euro is not as good as before, one euro can only be exchanged for one dollar, which is undoubtedly terrible. You know, in the past, a salesman could exchange 1.3 dollars or even 1.4 dollars. Now the purchasing power has dropped a lot, which is not a good thing for the whole EU member states. Its currency purchasing power has declined, and foreign investment or imported goods is a big problem, that is, the cost may rise by 30% or even 40%. Therefore, they use macro-control means, whether monetary or other means, to stabilize the value of the euro.
In terms of money, it is natural to adopt a tight monetary policy. The so-called tight monetary policy means that by raising the loan interest rate, those inferior enterprises can't lend, and lowering the deposit interest rate, most ordinary depositors can't save, or even don't want to save. In this way, there are more currencies circulating in the market, and two of the three links of consumption, investment and export are raised, so the final export will naturally rise. The economy will gradually recover, which is the most ideal state and result of regulation.
But obviously, things will not develop in the most ideal direction, because if a country, a big economy or even several macro-control policies can be changed, then the scale of this economy must not be large enough. The economic situation of a big economy is very complicated, and regulation can only affect but not directly change the result. The current situation is that the purchasing power of the euro has declined. The introduction of this policy can only delay this process and cannot directly solve the problem of currency depreciation.