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To: Mike M2 who wrote (172971)	6/15/2002 4:14:37 PM
From: Haim R. Branisteanu	Respond to of 436258

DJ G7/France's Mer: Euro Gains Not Problem For US Or Europe HALIFAX, N.S. (Dow Jones)--The recent rise in the euro versus the dollar is positive for the euro zone because of its impact on inflation, but further gains could pose problems for the region's economy, French Finance Minister Francis Mer said Saturday. Recent gains in the euro against the dollar, which pushed the single currency to a fresh 17-month high Friday, is "not a major problem" for the U.S. or Europe, Mer said following weekend meetings of finance ministers of the Group of Seven leading industrial countries. In addition to France, the G7 includes the U.S., Canada, U.K., Italy, Japan and Germany. "In Europe, a euro that's a bit stronger or a dollar that's a bit weaker is disinflationary," Mer said. If the euro continues to increase "that could create problems at some point, but we're not there." The euro moved above the psychologically-important $0.95 level Friday, and in late New York dealings traded at $0.9449. There was no mention of exchange markets in Saturday's communique, and though analysts are closely eying foreign-exchange developments, finance ministers said they weren't a topic of discussion over the weekend. "It wasn't on the agenda and besides, currencies move in function of the markets," Mer said, noting that Japanese authorities tried to influence exchange markets by injecting billions of dollars without much effect. The French finance minister was upbeat about Europe's economic prospects, and said that recent gains in European sentiment could offset losses in consumer confidence in the U.S. "The European economic outlook is positive and confidence indicators are improving," Mer said. "At the same time, confidence in the U.S. is a bit less strong, so one compensates the other and it doesn't have an impact on global confidence, which is fundamental for growth." -By Brian Blackstone, Dow Jones Newswires; 902-474-2873; brian.blackstone@dowjones.com (END) Dow Jones Newswires 15-06-02 1806GMT