Almunia: Euro a success, but needs friends at home, weight abroad

May 7, 2008, 14:16 GMT

Brussels - The European Union's single currency, the euro, is a resounding success, but it needs more support at home and more influence abroad, the EU's top monetary official said Wednesday.

Officials say that the euro has brought stability, growth and security to Europe, but critics accuse it of creating sudden price rises and of failing to take into account the differing economic circumstances in the countries which use it.

The single currency, the idea for which was approved by EU leaders 10 years ago this month, has been an 'unarguable political and economic success,' but its public image 'does not always enjoy the reputation it should do,' EU Economic and Monetary Affairs Commissioner Joaquin Almunia told members of the European Parliament.

Moreover, while the euro has become the world's second reference currency after the dollar, the countries which use it have not yet created the 'solid external presence which would allow us to punch our weight on the world stage,' he said.

As a result, it is 'absolutely necessary' for the countries which use the euro to have 'one single presence' in international financial bodies, and for the EU's institutions to 'communicate better with the public so that citizens will be aware that the euro has genuinely brought them real advantages,' Almunia said.

The euro is currently used in 15 EU countries with a combined population of 320 million. On Wednesday morning the European Commission and the European Central Bank gave Slovakia the green light to join the club in January.