19 February 2002, 11:20  Swedish EMU committee says euro could hit economic stability

LONDON (AFX) - Sweden's EMU Committee has warned that the European single currency could lead to greater economic instability, reported the Daily Telegraph citing the committee. Sweden's Prime Minister Goeran Persson wants to take Sweden into the euro as soon as possible and is expected to call a referendum on the issue in the second half of 2003. The economists in the committee said the one-size-fits all system could force countries to pursue counter-productive policies. "EMU will perhaps not become the stable low inflation and low-interest rate environment most often assume in the debate," they said, adding that fast-growing economies such as Ireland or Spain need a tighter monetary policy than countries such as Germany.

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