The euro slipped to a new eight-month low as it continued to be weighed down by the political fallout from the French 'no' vote at the weekend and today's expected resounding rejection of the draft EU constitution from the Netherlands. On top of that, the euro was also undermined by further disappointing euro zone economic news and a report in Stern magazine suggesting that German officials have discussed the possible collapse of the single currency. Though a spokesman for German finance minister Hans Eichel sought to downplay the report, the report fitted in with the underlying gloom surrounding the euro. "The story, combined with weak data out of the euro zone, as well as the likely Dutch rejection of the EU constitution today, sets a very negative bias for the euro today," said Mitul Kotecha, head of global currency research at CALYON. The euro has suffered over the last day or so as the appointment of Dominique de Villepin as the new French Prime Minister failed to capture the market's imagination. Analysts said de Villepin's appointment holds out little promise of wide-ranging economic reforms in the country or in the EU as a whole. "Euro selling yesterday was reinvigorated by news that de Villepin would be appointed the new French Prime Minister, which was a disappointment to those hoping for the more market-friendly Nicolas Sarkozy," said UBS analyst Ashley Davies.