Brussels, 02/04/2001 (Agence Europe) - On Monday, the European Commission published an executive summary that assesses the first two years of the Economic and Monetary Union (EMU). It refers to the "sound progress" achieved in the third phase of EMU, begun on 1 January 1999
The report is divided into four parts, assessing: - macroeconomic performances of the euro zone, policies regarding budgetary and monetary matters and the coordination of economic policies; - the euro exchange rate and external aspects of EMU; - integration of financial markets; - preparations for the changeover to the euro.
The paper observes that the convergence process was not endangered by severe crises (Kosovo, rise in the price of oil) and recalls that the economy of the euro zone has seen a growth of some 3%, whereas inflation has remained under the 2% mark. Monetary policy has been centered on maintaining interest rates in line with price stability in the medium-term, and budgetary discipline remained the key-words in fiscal matters. The report welcomes the creation of the Eurogroup, whose "visibility has improved", but calls for greater efficiency in coordinating economic policies. It emphasizes the role of the second international currency played by the euro since its introduction and its tendency to strengthen as trade links have been tied with third countries. Regarding the changeover to the single currency, it draws attention to the need to better inform small and medium-sized enterprises, whereas public authorities are asked to set the example. The Commission is concerned at the consumers' perception of the euro and announces an acceleration in awareness campaigns.