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Fri 03 Mar 1999Boost for euro as Lafontaine decides to resignGERMANY was poised for a change of political direction last night following the surprise resignation of its controversial finance minister, Mr Oskar Lafontaine. Mr Lafontaine gave no explanation for his decision to resign, but it follows reports of a bruising clash with the Chancellor, Mr Gerhard Schroder, over the direction of economic policy.Prompted by the news, the euro rose to over $1.10 - an increase of almost 2 per cent. And ironically for Mr Lafontaine, the European Central Bank (ECB) may now cut interest rates - a move it was reluctant to concede in the face of Mr Lafontaine's insistence that it be done.