Strasbourg, 03/07/2001 (Agence Europe) - Speaking before the plenary session of the European Parliament, the President of the European Central Bank, Wim Duisenberg, presented the third ECB report. He recalled that the year 2000 was an exceptional year in terms of growth but that, in order to combat inflation, the ECB had put interest rates up six times. After making it clear that the ECB strengthened its credibility during the year 2000, he said he did not agree with the doubts expressed in the report by Ms Randzio-Plath (see EUROPE of 23 June, p.11), on the price stability strategy in the euro zone. Mr Duisenberg insisted on the essential role that the M3 aggregate will continue to play in the ECB strategy, noting that the average of M3 growth rates stabilised over the past three months. "We shall continue to expect the currently high rates of inflation to remain a transitory phenomenon and, in the absence of further unfavourable price shocks, inflation rates should fall below 2% in 2002", said Mr Duisenberg. As far as inflationary pressure that could be exerted during changeover to the euro is concerned, he felt that such pressure should be limited by price transparency and competition. Also, stressing the commitment of finance ministers of the euro zone to ensure price neutrality, taxes and salaries managed by their administrations, he appealed on all regional governments and companies to follow this example. "It is vital that price increases should not become permanent, and important that salary moderation should continue", reaffirmed Mr Duisenberg. Speaking of preparations for changeover to the euro, he said that the current campaigns do not aim at selling the euro, which will happen all by itself, but to familiarise citizens with coins and notes in euros. This transition is an "unprecedented challenge and a substantial logistical exercise", he said, before considering that there is no new element that would justify reopening discussion on early availability of small notes for consumers. Mr Duisenberg concluded his speech by insisting in favour of better cooperation between national authorities responsible for the prudential surveillance of financial bodies.