Brussels, 07/05/2001 (Agence Europe) - On Monday, the finance ministers of the Eurogroup reiterated their message of realistic optimism regarding the economic prospects of the euro-zone in the face of global economic slowdown. "We still have realistic optimism (…) with realistic being the important word", Didier Reynders, Eurogroup President, told the press. The Twelve reviewed the forecasts of the OECD and the results of the G7-Finance and International Monetary Fund meetings, both meetings punctuated by external pressure on the European Central Bank (ECB) to lower its key rates. The Eurogroup did not release any communication on the subject. Didier Reynders eluded the matter, declaring that he had "noted the position of those concerned" and urged the press to address ECB President Wim Duisenberg in person.
Echoing the fears raised that same morning by a delegation from the European Parliament during a meeting with the Ecofin Troika, the Eurogroup dismissed the possibility that there would be inflationary risk at the time of changeover to the euro. "There is nothing to suggest prices would rise in connection with the forecasts that some economic operators are tempted to make on changeover to single currency", said Mr Reynders. He added that measures would be taken so that the sums due to public authorities are rounded off, sometimes even to the advantage of taxpayers, as will be the case in Germany and Belgium.
Commissioner Pedro Solbes, responsible for economic and monetary affairs, presented the results of the sixth scoreboard on preparations under way for the introduction of notes and coins in euros. He placed emphasis on the early supply of notes and coins to retailers from their banks, which will be possible during the third quarter of 2001, an operation that has not yet been decided on in all countries.
Furthermore, the Commission welcomed the rise in spending for communication operations on the euro which, for the whole of the euro-zone, increases from EUR 84 million in 2000 to 154 million in 2001. It nonetheless deplores the fact that the budget for information campaigns varies considerably from one State to the next. Germany, the first targeted, is spending EUR 9.9 million in 2001, around one third of the amounts earmarked for this by the Netherlands (35 million) or France (26.8 million) and hardly more than Belgium (8.7 million). Furthermore, the monthly scoreboard notes, on the basis of results of a survey, that 75% of banks taking part in the survey will organise a changeover in their accounts earlier than planned, and that 85% will not be asking their account-holders for any commission on exchange. The production of notes and coins is progressing well, notes the European Executive. In March, it reached 72% of the EUR 50 billion in coins and 40% of the 14.25 billion notes.
Regarding structural reforms, the Twelve tackled the impact that the advantages granted at fiscal and social level might offer regarding employment. They examined the cases of Spain and Ireland, among others, and the monitoring of such measures. The Economic and Financial Committee (EFC) was entrusted with coordinating work with the European Commission and preparing a report for the European Council of Barcelona.