WRITTEN QUESTION E-1616/00 by Cristiana Muscardini (UEN) to the Commission. The euro.
Date: 2000-05-29
Institutions: European Parliament, Provisional data
Subjects: euro, exchange rate

C 72 E/88

Official Journal of the European Communities

EN

6.3.2001

The Commission would ask the Honourable Member to send it further information on this matter, so that
it can assess whether the situation which currently exists in Italy could be such that it might prevent the
internal market from operating properly and result in distortions of competition in the treatment of
authors at Community level.

(1) OJ L 346, 27.11.1992.
(2) OJ C 108, 7.4.1998.

(2001/C 72 E/105)

WRITTEN QUESTION E-1616/00

by Cristiana Muscardini (UEN) to the Commission

(29 May 2000)

Subject: The euro

Given that the single currency has for many months been continuing to fall in value against the dollar,
which, as a result of the increase in commodity prices, is increasingly becoming the world currency:

1. Will the Commission immediately launch an inquiry to ascertain whether the continuing fall in the
value of the euro is a result of speculation, economic interests or political measures designed to
weaken the European Union and prevent it taking part in world markets, as an alternative to other
powerful countries, bearing in mind also that in recent months no individual Member States have
suffered from economic crises and the employment situation has remained as it was before the launch
of the euro?

2. Will it also say why no economic plan has yet been introduced, since this is the only valid tool for
supporting and asserting the position of the euro and whether the absence of such a plan, which
clearly no EU governments want, is also evidence of a political design aimed at breaking up the
existing European structure and replacing it with a different political and economic framework?

Answer given by Mr Solbes Mira on behalf of the Commission

(28 June 2000)

The Commission does not think that recent exchange rate developments are the result of any political-
economic conspiracy against the euro and hence it does not intend to start an inquiry on this issue.
Exchange rate fluctuations between the main world currencies are an intrinsic feature of the international
financial system ever since the dismantling of the Bretton-Woods system.

While the present level of the exchange rate of the euro is widely regarded as lower than economic
fundamentals would justify, it should be pointed out that the euro was introduced in 1999 at a relatively
high level, due to inflows of capital into the euro area in anticipation of its introduction. Part of the
depreciation during 1999 can be seen as a correction of this relatively high initial value.

Relative cyclical developments and prospects in the euro area compared to other main world regions have
also to be taken into account in the course of 1999. In particular, while growth in the euro area was
slowing down, the American economy continued to surprise for its buoyancy, and the Japanese economy
emerged from a long recession. The outlook for the euro area economy has now considerably improved,
with robust GDP growth expected in 2000 and 2001.

The euro is being widely used by international financial markets. It was the favourite issuing currency in
international bond markets in 1999 and in the first quarter of 2000.