Eastern Europe Worried by Weak Euro

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Eastern Europe Worried by Weak Euro

WARSAW, Poland - The euro's persistent fall is likely to pose problems for emerging economies of Eastern Europe, the chief of the European Bank for Reconstruction and Development said Thursday. ''Of course it depends on an individual economy, but such a situation can create difficulties,'' the bank's president, Jean Lemierre, said at a news conference during a visit to Warsaw.

Poland's central bank president, Hanna Gronkiewicz-Walz, acknowledged that Poland is at risk from a weak euro because 60% of its export sales go to the 11 European Union countries that use the currency.

A weak euro makes Polish exports to those countries more expensive.

Lemierre said, however, that he believes the strength of economic growth in the euro zone is more important than exchange rates because it creates demand for imports from eastern Europe.

''In my view, Western Europe has a strong growth rate, and a sustainable one,'' he said.

The euro fell to a another new low below 85 cents against the U.S. dollar Wednesday, though it regained some ground by midday Thursday.

http://www.usatoday.com/aponline/2000092111/2000092111052300.htm

-- Martin Thompson (mthom1927@aol.com), September 21, 2000


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