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To: Alex who wrote (19312)	9/19/1998 4:00:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116756

ECB's Issing says EMU standing up to crises-report 10:23 a.m. Sep 19, 1998 Eastern HAMBURG, Germany, Sept 19 (Reuters) - The plan to launch a single currency in Europe is standing up to the test of the financial crises in Asia and Russia, the European Central Bank's chief economist said in a magazine interview. European monetary union has built up enough confidence so that it is unlikely to be shaken by speculators when the European single currency arrives in 11 European nations on January 1, Ottmar Issing told Der Spiegel news magazine. ''The currency union project has proved itself to be speculation-resistant,'' Issing said in a summary of an article released on Saturday ahead of pubication on Monday. ''No one would come to the idea to speculate against it.'' Issing also said that confidence in EMU ''has protected the Europe 11 from enormous problems,'' adding that any speculators betting against the euro would only come away with ''a bloody nose.'' Despite the success so far, Issing said EMU member states still had a duty to continue internal reforms. The former chief economist at Germany's Bundesbank, Issing also said the 11 EMU nations faced neither a danger of inflation nor deflation right now. ''The current inflation rate in the euro area corresponds to our interpretation of what the treaty demands: namely, price stability,'' said Issing, who in the past has been considered a euro-sceptic. Asked if the European Central Bank could wait until January to cut interest rates, Issing said the question had to be answered in the new year. ''No one wants to fight inflation dangers that are not there,'' he said. ((Neal Boudette, Frankfurt Newsroom, +49 69 756525, frankfurt.newsroom+reuters.com)) Copyright 1998 Reuters Limited.