17 September 2001, 16:43 Duisenberg says euro cash launch must not lead to unjustified price rises
HELSINKI (AFX) - European Central Bank president Wim Duisenberg
said the introduction of euro notes and coins must not lead to
unjustified price increases.
"We cannot afford such a momentous event to be overshadowed by
unjustified price increases. Any increases would undermine confidence
in the euro and damage the credibility of those abusing the cash
changeover in such a way," Duisenberg said in a speech at a Bank of
Finland conference.
Duisenberg said price transparency and market competition are
likely to limit inflationary pressures stemming from the cash
changeover, but he added: "Still, I would like to appeal to all
economic operators, including governments, to strictly apply the
rounding rules."
He said the ECB is also asking the public to keep a close eye on
prices during the changeover period and is encouraging consumers and
organisations to follow up any abuses.
On last week's terrorist attacks on the US, Duisenberg said
business must now go on.
"The attacks were so horrific -- and tragic -- that we are talking
about the world being a different place now. That may be so. But life
-- and that includes business life -- has to, and will, go on," he
said.
Duisenberg reiterated that the ECB stands ready to support the
normal functioning of markets and relevant operational systems if the
need arises.
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