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Questions on emergency plans for euro

3 March 2009

Questions on emergency plans for euro

'Are you prepared to promote public confidence in the financial system by preparing timely emergency measures, rather than waiting until the need for them occurs?' This was one of the questions on the matter which SP Euro-MP Erik Meijer put to the Commission today.

Erik MeijerSingle currency

Is the euro able to withstand the crisis? Are emergency measures in place in the event that weaker members of the eurozone should find that they are no longer capable of fulfilling their financial obligations, such as their commitment to rein in budget deficits and state debts?

Such questions are in fact not being discussed, because openly doubting the currency's strength would have a negative outcome. "Nevertheless, the availability of emergency scenarios is more important than ever," says Erik Meijer. "That's why I want the European Commission to explain whether they have taken into account the possibility that the euro cannot be maintained as a unified currency of equal value in all participating countries. Long before the economic recession took hold, a number of experts considered it a possibility that weaker eurozone countries might not be in a position to continue to meet the criteria."

Prepared

"The chaotic experiences of the 1990s in the case of the Soviet rouble and the Yugoslav dinar show how important it is to be prepared for any eventuality. The monetary separation between the Czech republic and Slovakia in 1993 demonstrated how things could be better handled. Stamps on the banknotes were used to give the Czech and Slovak crown differing values. For the euro, we need to be ready with an emergency plan and a plan to put things right."

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