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To: Sarmad Y. Hermiz who wrote (49584)	4/8/1999 3:41:00 PM
From: Jan Crawley	Read Replies (3) \| Respond to of 164684

Maybe you should consult a TA expert i am calling my Mom, she knows everything!! LOL It's back to 178 now. Amzn is very funny today?? ps. What? Not at your computer?? Not allowed!!

To: Sarmad Y. Hermiz who wrote (49584)	4/9/1999 1:02:00 PM
From: Glenn D. Rudolph	Respond to of 164684

ANALYSIS-Structural reform takes time despite ECB By Alan Wheatley, European Economics Correspondent LONDON, April 9 (Reuters) - In slashing interest rates, the European Central Bank has deftly shifted the onus for growth-creation within the euro bloc to Europe's governments. But economists remain deeply sceptical about the willingness of politicians to take the tough steps necessary to free up Europe's rigid labour markets, and some even believe the ECB's bold cut may actually cause governments to drag their feet. "European politicians have so far only launched structural reforms when placed under pressure," said economists at Chase Manhattan in a note to clients on Friday. "This time the ECB has delivered early, which in fact might reduce the adjustment pressure. Politicians might just continue with their 'muddle through' approach." A day after Thursday's half-point cut, which brought rates within the 11-nation euro zone down to 2.5 percent, Germany's finance ministry said it would strive to act on the ECB's "positive signal" and work to reinforce it. Thomas Mayer of Goldman Sachs was optimistic that governments would pick up the gauntlet thrown down by ECB President Wim Duisenberg, who said ministers had to play ball by keeping their budgets tight and pushing through reforms. "There was a message to the politicans that they should now do their part to improve growth prospects. Clearly the move has enhanced the chance that this is going to happen," he said. But Ellen van der Gulik of JP Morgan said she remained pessimistic about the pace of reform in Europe's biggest economy because of a lack of support in Chancellor Gerhard Schroeder's Social Democratic Party. "I'm very sceptical about any substantial structural reform taking place in Germany over the coming years," she said. COMPETITIVE PRESSURES HEIGHTEN URGENCY FOR STRUCTURAL REFORM Nevertheless, with European rates on hold for the forseeable future and the option of devaluation blocked off forever, economists agree that euro-zone members will have to rely on improving the nuts and bolts of their economies if they want to gain a competitive edge on their neighbours. From weeding out wasteful subsidies to making it easier for firms to hire and fire, from cutting red tape to helping workers to move to new jobs, structural reform covers a vast array of politically sensitive policies. Not only is there no ready-made formula to follow, but the impact of isolated structural changes is gradual and diffuse. "We're talking about an area where there are so many connections between policies that if you just do one thing it doesn't have a great effect," Dirk Pilat of the Organisation for Economic Cooperation and Development (OECD) in Paris said. But there is a growing body of evidence that, in conjunction with sound fiscal, monetary and wage policies, structural reforms can boost economic performance in the medium term. NETHERLANDS LEADS THE WAY, FRANCE WAKES UP The Netherlands, for example, has managed to limit growth in unit labour costs from 1983-1998 to 10 percent, compared to about 40 pct in Austria and Belgium whose wage trends were largely linked to Germany's, according to the OECD. This gave the Netherlands an effective depreciation in its all-important real exchange rate that translated into improved competitiveness and a 30 percent rise in the level of employment -- similar to the United States. But, as the OECD pointed out in its first post-EMU review of policies in the euro zone, Dutch wage moderation was underpinned by significant structural labour market reforms, including measures to encourage part-time work and short-term contracts. The Netherlands now boasts a jobless rate of 3.6 percent compared with 11.7 percent in next-door Belgium. France, too, has gradually started down the road of reform. Through cuts in employers' social security contributions and other measures to f...