Not All Are Sold On Euro Fanfare, Trade Group Learns

The euro has a long way to go before fulfilling its promise of unifying Europe economically and, eventually, politically, speakers at an International Trade Alliance meeting said Thursday.

Whitworth College professor John Falvey said the euro, the common currency adopted Jan. 1 by 11 European countries, has been a dream of the continent’s leaders since the end of World War II.

The thinking was a single currency would bind participating nations together, he said, reducing the potential for warfare that had killed 50 million between 1915 and 1945.

But there is no precedent for the experiment, nor any Plan B if the consolidation fails, Falvey said.

And the economic power the euro creates - output is comparable to that of the U.S. - is not yet matched by a unified political voice, he added.

In fact, Falvey said, part of the impetus for the euro was resentment toward the supremacy of the dollar. Relying on the dollar sometimes meant sharing U.S. economic woes, he said.

Falvey said doing business in Europe will become easier because complications associated with exchange rates will be eliminated, regulation of industries will be simplified and product standards shared.

But the transition will be complicated by accounting problems and the continued use of the “legacy,” or existing currencies, through the year 2002, he said.

Falvey suggested businesses seek partners in Europe. Each party can help the other gain a foothold in new markets, he said.

Michael Upton, British consul in Seattle, said the United Kingdom is waiting to see some of the problems identified by Falvey sorted out before adopting the euro.