2 May 2001, 14:48 Duisenberg has 'realistic optimism' for euro zone economic prospects
FRANKFURT (AFX) - European Central Bank president Wim Duisenberg
said he has realistic optimism about the prospects for the euro zone
economy, despite the world economic slowdown
Writing in the ECB's annual report, Duisenberg said that since the
introduction of the euro, the euro zone has become less vulnerable to
external economic developments.
"There is good reason for realistic optimism regarding the
prospects for the euro area economy", Duisenberg said.
He added the ECB was forced to make interest rate hikes last year
due to the twin threats to price stability created by the euro's
depreciation and the rapid oil price increase.
He said although the risks have become more balanced in recent
months, with growth declining from previous high levels, price
stability risks persist in the euro zone.
"In late 2000 and 2001 there were still some elements of upward
risks to price stability", he said.
Duisenberg said these have stemmed from prospects for wage
developments, second round effects from the euro's fall and the oil
price, as well as the fiscal policy of certain euro zone governments.
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