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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