Lords withhold final verdict on euro on its 10th anniversary

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The Independent Online

Ten years on from the creation of the European Central Bank, the euro has managed to avoid the fate predicted by many that the currency would become a victim of financial speculation which would lead to a quick collapse, according to a report from the House of Lords Economic and Financial Affairs Committee. The Committee say that the euro has contributed to economic development and low inflation in the eurozone and has been beneficial to trade both between eurozone countries and between eurozone and non-eurozone EU countries. However "it is too early to make a final judgement on the durability of the euro the evidence so far seems to suggest it has been a robust and effective currency. It will be interesting to see how it performs as the world economic outlook changes."

The Committee add that it would be inappropriate to move towards any central co-ordination of member states budgets. They argue that while such a move might be theoretically desirable in terms of promoting monetary union and would contribute to the stability of the euro it is politically unrealistic.