Greek downgrade no threat to euro, says German EconMin

Greece's latest credit rating downgrade will not create any new uncertainty for the euro currency, German Economy Minister Rainer Bruederle said on Tuesday.
Moody's slashed Greece's credit rating by three notches on Monday due to an increased default risk, raising prospects of the distressed euro zone sovereign restructuring its debt, perhaps before 2013.
"I'm not worried," Bruederle told reporters. "When I see the euro above $1.40, that isn't any expression of uncertainty about the European currency."
The euro slipped 0.3% on Tuesday to $1.3923 from a four-month high of around $1.4036 hit on Monday. The common currency had gained on expectations of a euro zone interest rate rise next month.
Europe was in principle on the right path with its reform process, though this month's two euro zone summits needed to tackle improving the bloc's competitiveness, said Bruederle.
German Chancellor Angela Merkel has made a joint call with France for euro zone countries to agree a competitiveness pact at the summits, which will also tackle expanding the region's EFSF bailout fund to its full 440 billion euro capacity.
Bruederle also said that Germany's economic recovery would not be by endangered by a series of strikes by train drivers, which union members voted on Monday to step up.
"I'm not worried by that either," he said.
Germany's steel industry is the biggest client of rail freight and is therefore likely to be the hardest hit.
The export-oriented auto sector, dependent on rail transport to sea ports, could also face delays, along with power plants which rely on coal deliveries by rail.
Germany's public sector union is also in dispute with employers and launched a series of one-day stoppages last week.