8 June 2001, 13:53 Duisenberg says euro still has upward potential
FRANKFURT (AFX) - European Central Bank president Wim Duisenberg
said he still believes the euro has the potential to appreciate against
the dollar.
In an interview with the Sueddeutsche Zeitung, Duisenberg also said
he still wished his colleagues in the ECB Governing Council and the
finance ministers in the euro area would speak with "a little
discipline" when communicating to the public. .
The newspaper said Duisenberg had conceded the bank made mistakes
in the press but not with the message it wanted to convey to the
public. .
He said the prospects in the US economy remain uncertain and that a
fundamental reason for a strong euro lies in the risks inherent in the
huge deficit in the US balance of payments. .
He said an indication of major problems in the US economy is
President George Bush's advocacy for limits in steel imports. He
described this as a protectionist move. .
Turning to criticisms that the ECB policy is supposedly unclear and
that the last interest rate cut was not properly explained, he said the
markets and particularly the media got what they wanted but the timing
was not what they had expected. .
He said some were apparently irritated by the move but he did not
want to take the financial markets by surprise. .
On his colleages at the Governing Council, Duisenberg said it would
not be possible for everybody to speak with one voice because the
council members are not "marionettes". .
But he still wished the 18 council members and the 12 European
finance ministers would show a "little discipline".
He noted the French had always kept to the text of anything agreed
upon.
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