euro|topics - The European Central Bank turns 10

Main focus of Monday, June 2, 2008

The European Central Bank turns 10

The European Central Bank was founded ten years ago on 1 June 1998: a crucial step in introducing the single European currency. Europe's press discusses the triumphs, but also the negative effects of the introduction of the euro system.

Financial Times Deutschland - Germany

"In its first ten years, the European Central Bank (ECB) has benefited from the lack of a common public opinion in the Babylonian Eurozone. Yet that may quickly become its downfall", writes the Financial Times Deutschland. "Even ten years after the introduction of the euro, there is not so much as a trace of cross-border public opinion in the Eurozone - aside from the (few) experts - that could exert pressure on Europe's central bankers. True, recent surveys show that a good 53 percent of - otherwise enlightened - Germans are convinced that the euro is responsible for price rises in recent years. However they do not see the European Central Bank as the culprit. Until now the bank has benefited in this environment from the fact that the diverging interests of the many governments tend to cancel each other out. But the ECB could face isolation should these interests one day overlap." (02/06/2008)

I Kathimerini - Greece

The euro is not to blame for everything, and particularly not for the rising prices, the Greek daily writes. "Germany and France also use the euro, but a cup of coffee there costs less than it does in Greece. ... The strong euro has ... protected ... the Greeks from the worst repercussions of the doubling in the price of oil and food. Low interest rates ... have enabled people to take out a loan and buy a house or a new car. At the same time real income in Greece has gone up by around ten percent (whereas in Germany it has gone down by ten percent). ... The money of consumers has played an important role in driving growth, but it has also boosted imports. ... Products are more expensive now because there are people who are willing to pay the price. The end result is that those who have money have reached their limits while those who have to live on low incomes are having great difficulties." (01/06/2008)

Les Echos - France

"There are moments when one should stop and look back at what has been achieved. Those who have worked on concretising ... a dream - namely the birth of a currency that is managed by an internationally recognised institution - know this. Within a decade - the blink of an eye in historical terms - all the negative predictions have been proved false. The euro has made such triumphal progress that it has prompted discussion about the possible decline of the dollar, the star of the global monetary system. [In the meantime] the European Central Bank has made its mark as a powerful institution." (30/05/2008)

Kainuun Sanomat - Finland

"Ten years ago the decision was made on which countries were suitable to be part of the Eurozone. Finland was one of those eleven countries. ... In Frankfurt, the home of the European Central Bank, the representatives of the euro countries can merrily toast the success of the euro. ... Meanwhile, inflation, which is being accelerated above all by the climb in food prices, has become the key problem of economic policy. ... The strong euro initially cushioned the impact of high prices, but now European consumers are feeling the consequences of soaring prices on the global market in their pockets. ... Another problem for the Eurozone is that not all member countries are able to bring their economies up to scratch quickly enough. ... It is particularly important for the former socialist countries of Central and Eastern Europe to get into shape for the euro. To become members they must sort out their budgetary policies." (02/06/2008)

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