USA/FILE: EU COMMISSION PRESIDENT ROMANO PRODI TELLS A GATHERING OF BANKERS AND ECONOMISTS IN NEW YORK THAT THE EURO IS A STRONG CURRENCY

Record ID: 377058

  • Title: USA/FILE: EU COMMISSION PRESIDENT ROMANO PRODI TELLS A GATHERING OF BANKERS AND ECONOMISTS IN NEW YORK THAT THE EURO IS A STRONG CURRENCY
  • Date: 11th January 2002
  • Summary: (W8) NEW YORK CITY, NEW YORK, USA (JANUARY 11, 2002) (REUTERS - ACCESS ALL) 1. SLV: EXTERIOR OF COUNCIL ON FOREIGN RELATIONS BUILDING 0.05 2. SLV: PRESIDENT OF THE EUROPEAN COMMISSION ROMANO PRODI SPEAKING TO THE COUNCIL ON FOREIGN RELATIONS 0.11 3. SV: AUDIENCE 0.15 4. SV: (SOUNDBITE) (English) ROMANO PRODI SAYING: "The Euro is not
  • Embargoed: 26th January 2002 12:00
  • Keywords:
  • Location: NEW YORK CITY, NEW YORK, USA AND UNIDENTIFIED LOCATIONS IN EUROPE
  • City:
  • Country: USA
  • Reuters ID: LVAAL0RDFYVSJX7GWTFT1DXIR53U
  • Story Text: European Commission President Romano Prodi has told a
    gathering of bankers and economists in New York that the Euro
    is a strong currency. Prodi also predicted that Europe would
    see a recovery in 2002.


    Speaking at the Council on Foreign Relations in New
    York on Friday (January 11), European Commission President
    Romano Prodi had encouraging words to say about the euro to
    Wall Street bankers gathered at the meeting.

    The euro, already widely used as a borrowing currency in
    corporate bond markets, is set to become an attractive
    alternative to the dollar, Prodi said.

    "The euro is not only the most important currency in
    Europe, but in the future it will play an increasingly
    important role as an international currency and will be an
    attractive alternative to the dollar. This meal can be paid in
    Euro if you want."
    The euro was likely to be used widely in international
    trade and as a reserve currency, Prodi said.

    The euro has not done well in relation to the dollar since
    it was launched as an electronic currency two years ago, but
    Prodi inferred that this has been good for Europe.

    "I never wanted to challenge the dollar in terms of rates
    of exchange. And in a slack economy to have a lower rate of
    exchange is not so bad, you know," said Prodi.

    Prodi was much more bullish about the strength of the euro
    going forward.

    "I think that this has been very profitable for Europe. For
    the future I don't want to make any forecasts for the rate of
    exchange because this is not my job. But really the euro is a
    strong currency now. The problem is what I told you before, to
    go on with the coordination of economic policy."
    Prodi hailed the successful changeover to euro notes and
    coins, which he said was almost complete, and added that the
    single currency symbolized the determination of European
    citizens to share their future.

    The Vice-Chairman of Goldman Sachs, Robert Hormats, has
    been following the euro closely since it's introduction.

    Hormats said he was impressed with how well the January 1st
    introduction of euro currency has been managed.

    "I've been very impressed with how well the Europeans have
    introduced the euro, both notes and coins. It's been a very
    smooth process when you consider the magnitude of the job. I
    think they'll be increasing pressure for the Scandinavian
    countries who are not in the euro to join, and I think down
    the road for Britain to join," said Hormats.

    Prodi also said there were signs Europe's economic downturn
    might end early this year and that the region's economic
    fundamentals were in good shape, not the least because the
    euro had cushioned the region from shocks.

    "There are signs that things will not be as bad as feared.

    Our economic fundamentals are in good shape, and the euro has
    helped us absorb the external and internal shock of last year.

    This puts Europe in a better position to recover from the
    current downturn."
    "There are also signs that the downturn maybe short lived.

    According to our estimate the economy will start improving
    soon and growth will accelerate during the year."," Prodi
    said, noting economic effects from the Sept. 11 attacks were
    not as bad as had been previously feared.



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