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A joint statement released at a meeting of the 12 eurozone finance chiefs on Monday warned of the risk to economic growth by the euro's volatility.

"We particularly stress stability and we are concerned about excessive exchange rate moves," they said.

The move follows two months in which the euro has risen to all-time highs.

The five-year-old currency's strength has been particularly marked against the US dollar.

Strength and weakness

Until a week ago, it was up more than 11%, breaking records on a daily basis.

The past few days have seen an easing back to a 7% gain.

But the concern remains, particularly given signs that the White House is content to see the dollar drop even further.

The effects on the competitiveness of European companies are already being felt.

French aerospace firm Dassault Aviation has already blamed the strong euro for a 25% fall in its competitiveness in the military aviation business.

And Monday also brought news of a halving of Europe's trade surplus in November - the month the dollar's slide took hold - from the month before.

Row

The meeting in Brussels is the monthly gathering gathering of the 12 eurozone nations' finance ministers, ahead of the full European Union ministers' meeting on Tuesday.

At November's meeting, ministers agreed to ignore a third year of rule-breaking deficits on the part of France and Germany.

The decision incensed the European Commission, whose rule demanding a 3% maximum budget deficit it was.

Ministers make no secret that they will not back down in the row with the Commission - now threatening legal action over the breach.

But the fact that Budget Commissioner Pedro Solbes' name is also on Monday's statement is a sign of how serious the euro concerns are.

The statement was at pains to look for the positive.

"Ministers, the President of the European Central Bank, and the Commissioner welcome the recent signs of strengthened economic activity in the euro area," it said.

It pointed to low interest rates and the "important wide-ranging structural reforms" of healthcare and labour markets in several countries such as Germany as cause for optimism.

But it stressed the need for long-term price stability - and thus the need for the euro's climb to flatten out.