Euro fighting for survival

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

EURO FIGHTING FOR SURVIVAL

Ailing ... EU officials admit the euro is fighting for its survival

http://www.thesun.co.uk/news/13514625

From GEORGE PASCOE-WATSON in Stockholm

THE ailing euro is fighting for its survival, EU officials admitted last night.

The warning came as squabbling leaders were told to modernise their economies or risk wrecking the single currency. They were told to CUT red tape, DUMP costly employment rules and OPEN up markets - or see the euro become as extinct as the dodo.

As PM Tony Blair arrived in Sweden for crunch talks, one bureaucrat said: "The euro could come under severe strain in the financial markets.

"Everyone is starting to worry about it. This was supposed to be the year of the euro and that we were going to pick up the slack as the US economy slowed down. But it is not happening."

Mr Blair plans to "bang heads together" at the talks in Stockholm, aimed at making Europe the engine room of the world economy.

In crisis ... Blair's plans could be thrown into chaos

EU President Romano Prodi's spokesman Jonathan Faull distanced the much-needed reforms from the perilous state of the euro. But he conceded: "The moment of truth has arrived. The Commission has done its job and put the right proposals on the table. Now it is up to the governments to do theirs."

The plunging value of the euro is causing consternation on the Continent, where countries like Germany and France are preparing to scrap their own currencies.

The crisis comes as Wall Street tumbled by 20 per cent after a 0.5 per cent cut in interest rates. The Dow Jones has fallen 1600 points in a fortnight from a peak of 10858.

Last night there were fears Mr Prodi's public warning would send the euro nosediving again today. The euro has slumped to just 88.7 cents - its lowest value since December 19 - as world moneymen lost their confidence in reforms to EU economies ever being carried out.

Plans to make euro notes and coins could be thrown into chaos and eventually sink Mr Blair's hopes of scrapping the Pound. Tory spokesman Francis Maude said: "We are right to say Britain should stay out of the euro for at least a lifetime of a Parliament."

-- Swissrose (cellier3@mindspring.com), March 23, 2001


Moderation questions? read the FAQ