Bundesbank rejects common currency doubts
16 June 2005, FRANKFURT - Suggestions that the European common currency, the euro, is headed for the rocks are absurd, Axel Weber, the president of the Bundesbank, said in an interview on Thursday.
16 June 2005
FRANKFURT - Suggestions that the European common currency, the euro, is headed for the rocks are absurd, Axel Weber, the president of the Bundesbank, said in an interview on Thursday.
"The things we have heard discussed recently in the Eurozone are not a serious interpretation of the facts," the head of the German central bank told Deutsche Presse-Agentur.
News reports have said senior Germans see a risk that the monetary union could collapse, and Italy's labour minister, Roberto Maroni, has appealed for Italy to drop the euro and restore its lira currency.
Weber said there was no connection between Germany's economic weakness and the introduction of the common currency.
"The successes of the common currency are obvious and prove the benefits of monetary union," he said. These included stable prices, low interest rates, low inflation and the end of currency fluctuations within the zone.
"Our economy has greatly profited by it," he said. Over the past five years, German exports to the other 11 nations in the zone have grown significantly. He added that the European Central Bank's current interest-rate policy was "appropriate".
Differences in growth and inflation rates across the zone were not a problem, he added.
"Since 1970, the growth rates of the countries in the Eurozone have varied by an average of 2 percent. The differences have actually been reduced over the past five years," he said.
Subject: German news