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"..when first introduced, the Euro was trading at about $0.90 to a US dollar, and that it now trades at over $1.20 to a US dollar..."
Actually when first introduced, back in december 12, 1998, with US$ 1.18 you could purchase one Euro. The Euro continue to devaluate itself since then, up to July 2001, when you could have purchased an euro with US$ 0,80. (Even with that exchange rate Nautor Swan was given away by Kymmene, while Hunter established their euro facilities)
Since then the Euro continue to appreciate (or the dollar to devaluate) up to now. Current exchange to Euro of US$ 1.22, means that dollar have devaluated only 3% since Euro''s inception.
This fact, does not change your statement since at some point the euro valu was 0.90, and since then the dollar devaluated.
My point in any case, is that with current exchange rate, is not going to be easy for the laborist governments in Europe, to sustain its "...major trading force in the world market..." (if any), subsidies to farmers, and the welfare state they are si keen of.