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To: Bobby Yellin who wrote (16789)	8/28/1998 6:50:00 PM
From: goldsnow	Respond to of 116822

Expect-massive Aid Package to emerge soon for Russia-lots of politician are getting totally paranoid....for a reason.. FOCUS - EU insists Russia crisis no threat to EMU 09:06 a.m. Aug 28, 1998 Eastern BRUSSELS, Aug 28 (Reuters) - The Russian financial crisis poses no threat to the planned launch of Europe's single currency on January 1, 1999, a European Commission spokeswoman said on Friday. Asked if there was any risk that the market turmoil could jeopardise the start of economic and monetary union, spokeswoman Martine Reicherts told reporters: ''The answer is no.'' Reicherts said that despite the havoc on European Union equity and currency markets on Thursday and Friday the Commission maintained its view the direct impact of Russia's crisis on the EU economy would be minimal. ''We should not over-exaggerate the stock market reaction...the economic analysis of the Commission's services at the moment is still that the economic consequences for the EU are minimal,'' Reicherts said in response to journalists' questions. The analysis would be detailed in a report to be discussed by the 20 commissioners on September 3. At the moment, a scheduled September 18 meeting between Commission President Jacques Santer and Russia's Prime Minister was still set to go ahead, she said. The report would concentrate on how the EU's technical aid programme for the former Soviet Union, called Tacis, could direct funding towards the overhaul of Russia's financial system. But it would also contain figures on the estimated exposure of Europe's banking sector to Russia. The European Community Humanitarian Office (ECHO) was also studying possible fallout from the crisis. ''We could expect something...winter as we all know is hard in Russia,'' Reicherts said. However, she reiterated the Commission's next economic forecasts for the EU would not be published until October 28. The last time the data was released in March the Commission foresaw the EU economy expanding 2.8 percent in 1998 and 3.0 percent in 1999, down from estimates of respectively 3.0 and 3.1 percent made in October 1997. European monetary affairs commissioner Yves-Thibault de Silguy said in June that the mathematical impact of the Asian crisis on European growth was likely to be slightly higher than the EU had initially estimated. The view that EMU's launch was not in doubt was shared by the head of the European Parliament's economic committee. In a statement on Friday, Karl von Wogau said that apart from pressure on Scandinavian currencies, ''the exchange rate stability between EMU members shows the market is acting as if the single currency is already here.'' ((Brussels Newsroom +32 2 287 6830, fax +32 2 230 5573 brussels.newsroom+reuters.com)) Copyright 1998 Reuters Limited