Brussels, 10/12/2001 (Agence Europe) - Answering questions put to him by the press on Friday during an on-line forum, Romano Prodi said he expected that the European single currency, though still weak, would gain in value compared to the dollar after euro notes and coins have come into usage after 1 January 2002. He also stressed that the Member States respected the letter of the provisions of the Stability and Growth Pact. "The introduction of the euro in its material form will have a positive effect on the European currency and perhaps, as a result, a negative effect on the dollar", said Mr Prodi, recalling in passing that the financial markets had given a cold welcome to the euro when it was launched on 1 January 1999 and that the greenbacks had then benefited from this. He declared that "European countries' budget positions were currently well within the limits laid out in the Stability and Growth Pact even though growth was slowing". Mr Prodi recalled that there was a "degree of give" in the Stability Pact, but that the Commission would keep a close watch on budget developments , particularly in Germany, France, Italy and Portugal.