13 October 2004

High ranking conference on the Euro

A high ranking conference on 'The euro after five years: successes, lessons and challenges' took place on 11 and 12 October 2004 in Amsterdam, organised by the European Commission. Mr Almunia and Mr Kallas emphasised the importance of enhancing the European single currency's international profile.

“A proper representation of the euro area in international organisations could significantly improve multilateral co-operation” said Mr Kallas. “An appropriate representation will allow the euro area to play an international role commensurate to its financial and economic weight. It will also provide the other major international actors with a real partner for dialogue and international co-operation.”

Mr Alumnia pointed out that “the representation of the euro area in international economic fora is unfortunately not commensurate to its economic weight. The weight of the euro area in the relevant international fora depends on its ability to speak effectively with a single voice.”

Mr Almunia believes the Euro is a strong currency because it has contributed to maintaining domestic purchasing power in the zone. Regarding exchange rates, the current value of the single currency is not a problem for the Euro-zone's current phase of renewal.

Mr Trichet underlined the importance of structural reforms as mentioned in the economic reform process of the Lisbon strategy.

“The European Union needs an economic and social model aiming at facilitating adjustments into new employment rather than the excessive protection of unproductive jobs. Investments are needed to build more efficient infrastructures. We need better support for research and development activities, and also improvements in our policies regarding human resources and education” Mr Trichet said.

“These prospective gains and the tilting of the balance of social preferences that these gains will bring about are often overlooked in the public debate. It is therefore imperative to make it clear to the public that, if governments and social partners deliver those reforms, the net benefits will be significant for the public at large.”

Speech of Mr Alumnia
Speech of Mr Kallas
Speech of Mr Trichet
Official Conference page

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