At the same time, it is noted that, for example, competitiveness is developing in different directions within the euro area and that the euro’s increase in value against, for example, the US dollar has had different effects in different Member States depending on the latter’s economic structures and the elasticity of their manufacturing industries.

9. Observes that the nominal appreciation of the euro exchange rate by 11,4 % against the US dollar, 12,4 % against the yen, and 8 % against the Chinese renminbi led only to a minor appreciation of the real effective exchange rate of 3,5 % in 2006, and has not been detrimental to exports and growth at the eurozone level so far; observes, however, that the effects differ among Member States depending on their economic structures and the elasticity of their real sector response to changes in the exchange rate; calls on the Member States to take steps to increase their adjustment capabilities; emphasises the need to take into account the ...[+++] effects that future increases of interest rates may have on the euro exchange rate and the competitiveness of the European economy;

8. Observes that the nominal appreciation of the euro exchange rate by 11,4 % against the US dollar, 12,4 % against the yen, 8 % against the Chinese renminbi led only to a minor appreciation of the real effective exchange rate of 3,5 % in 2006, and has not been detrimental to exports and growth at the euro area level so far; observes, however, that the effects differ among Member States depending on their economic structures and the elasticity of their real sector response to changes in the exchange rate; calls on the Member States to take steps to increase their adjustment capabilities; emphasises the need to take into account the ef ...[+++]fects that future increases of interest rates may have on the euro exchange rate and the competitiveness of the European economy;

This amounts to $1.1 billion a year, but it is not something that is fixed in stone.

In fact I am happy to report, based on the question the hon. member just asked, that I and my counterparts are meeting today and tomorrow for the purposes of making sure that the $400 million that has been earmarked for Ontario can start to roll, with the flexibilities that the province and the federal government are working on.

We would urge the committee to be cautious about recommending finance or policies that result in a highly valued Canadian dollar (1125) Canadian manufacturing has so far been surprisingly resilient to the higher dollar vis-à-vis the American dollar, but we fear that at the current exchange rate, sooner or later the vulnerability of our manufacturing will be exposed and thousands of jobs will be lost.