7 September 2001, 12:35 Prodi says euro zone stability pact must not be changed
MILAN (AFX) - The euro zone stability pact must not be changed
despite the economic slowdown, at least until Europe has a political
mechanism in place to deal with asymmetrical developments inside the
euro area, European Commission President Romano Prodi said.
Speaking in an interview with Italian financial daily Il Sole 24
Ore, Prodi said: "The stability pacy must not be changed, or else it
would send a message of weakness on the eve of the arrival of the euro
in the pockets of European citizens."
Asked whether an easing of the pact would not give Europe more
US-style flexibility to deal with the economic slowdown, Prodi said
Europe would first need the political mechanisms to deal with
asymmetries inside the single market.
"When it (Europe) has those mechanisms, it will be able to think
about how to revise the stability pact.
"On the other hand, having a truly European economic policy is
absolutely necessary to fully benefit from the great promise of the
euro and the (EU's) expansion to the east," he said.
On the global economy, Prodi said that "for some months now, the
growth data publications have been looking like a strip tease -- every
time a little bit less."
But he added that he does not believe the crisis to be "enormous"
or lengthy.
He reiterated calls for the Italian economy to become more flexible
and competitive, and said the government should try to develop the
economically backward southern half of the country into a "zone of
technological excellence."
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