Brussels, 09/01/2002 (Agence Europe) - Speaking to journalists on Wednesday, ten days after the introduction of the euro, the President of the European Commission, Romano Prodi, said we can certainly celebrate our success, the success of citizens who welcomed the new European currency first with curiosity, then with enthusiasm and finally with happiness. He said it was also a success for governments, banks and retailers, highlighting the co-ordination, encouragement and monitoring role played by the European Commission and the European Central Bank. Talking about his Commissioner for Economic and Social Affairs, Pedro Solbes, Mr Prodi said he had given his voice to the euro and had now lost his voice but we must hope that as the euro picks up, he will get it back. In a husky voice, the "martyr to the euro" (Mr Prodi's pun) Pedro Solbes, had been at the heart of a warm and unexpected interlude in the press room where he had presented the "faces" of the people who had worked with the Commission in the past few weeks and months to smooth the way for the introduction of the euro. He started with his own spokesperson Gerassimos Thomas, who was also saluted by President Prodi, who also thanked the Commission spokesperson Jonathan Faull and his staff.
In a brief balance sheet of the first ten days of the euro, Romano Prodi noted that by the end of this week 90% of cash purchases would be in euro and the figure had already reached almost 100% in Ireland and the Netherlands. He said that price rises remained the most important area being monitored and they were putting all their energy into it but that the information from the Member States showed that there had not yet been any sign of general price rises that could impact on inflation. Mr Prodi said that price rises had only been reported for specific products and welcomed consumer vigilance. He pointed out that the Commission had called on Member States to set an example not just by monitoring prices but also through the charges made by public services. He said that some had reacted positively, others less so. He explained that nobody could afford to rest on their laurels before all these problems had been resolved. In response to a question, Pedro Solbes said that there had been examples of rounding down in public services in Germany, France, Italy, Belgium and Greece.
Asked to comment again on his recent remarks that after the introduction of the euro there would be a need for greater co-ordination of Member States' economic policies, Mr Prodi replied that he had frankly said that it was one of the areas they had started working on. In a few months time, he said, they would be publishing a document on the issue which would clearly include a range of policies.
Messrs Prodi and Solbes also responded to questions on:
Italy's position. Did Umberto Bossi's sceptical comments deserve comment? I usually do not comment but look at the facts, said Mr Prodi, adding, however, that it was clear that he did not share a single of the Reform Minister's views. Answering another question, Mr Prodi stressed that he had explained how he disliked his remarks but that the Italian people had shown extraordinary enthusiasm for the euro and it had been the first time in his life that he had been cheered in the street and when getting into his plane at the airport, and also when signing euro notes (large denomination notes).
The position of countries outside the eurozone. Would the Danish referendum have ended differently if the euro had been in existence at the time? This is an issue for the three countries concerned, Denmark, the UK and Sweden, replied Mr Prodi, adding that the others simply had to set an example and he thought they had done so. Mr Solbes said the introduction of the euro substantially weakened the eurosceptics' arguments. Commenting on the timetable set out by the Swedish Prime Minister, Göran Persson for Sweden potentially joining the eurozone (referendum in the spring of 2002, joining the Exchange Rate Mechanism in 2004 and joining the euro in 2008 - see separate article) Mr Prodi said such timetables could only be set by the country in question but he was delighted that they were thinking about the timetable. Mr Solbes said the rules for joining the euro (including membership of the ERM, the Exchange Rate Mechanism) had not changed. Is it possible to leave the eurozone? Mr Prodi smiled and said that the marriage was permanent and he didn't think it was possible to leave, which is why economic co-ordination was required.
Potentially formalising the Eurogroup. Mr Solbes repeated his view that the Eurogroup was by definition an informal body and that decision-making had to remain with formal bodies (the ECOFIN Council).
Ireland and Netherlands lead the way in race to convert to euro payments
According to the latest batch of information released by the Commission on Wednesday, introduction of the euro is progressing apace and almost all cash payments in Ireland and the Netherlands are now in euro (other countries are expected to reach this rate by the end of the week). All ATMs in the twelve eurozone countries have now been converted and by the end of the month all coin-operated machines should be operating in euros.
The Commission admits that the situation regarding money transport is still strained in many countries with storage problems for national coins. The Commission explains that "in some cases, this bottleneck is causing delays in the collection of cash from banks and shops. But the problem should sort itself out in the next few days: the very large number of euro payments by consumers will mean that shops (and banks…) will have less need of fresh supplies of euros". The Commission has been informed that euro notes are now available in banks and bureaux de change in non-euro countries, particularly candidate countries.