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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