Laptop Battery By Staff
Computer memory is the quickest, cheapest, and easiest way to improve the performance of your system. Find RAM memory upgrades for desktops, laptops, servers, and printers all backed by a lifetime warranty and guaranteed compatible with your computer. Shipping is an everyday low price of $1.99! Computer Memory Outlet sells memory compatible with all leading computer manufacturers like Dell, Apple, Compaq, HP, Sony, IBM, Lenovo, and many more.”
Thinkpad (AXcess News) Brussels - European Central Bank President Jean-Claude Trichet told the European Parliament's economic and monetary committee that oil prices will drive euro-zone inflation up more than previously expected. He warned that further oil price hikes could lead to higher wage and price demands, which could push inflation up.
He said that the main danger of higher inflation comes from "potential second-round effects in wage and price-setting behaviour triggered by ongoing oil prices."
Committee chairwoman French Socialist Pervenche Bers suggested that given the impact of rising oil prices on the EU economy it would be a good idea to create a coordinated response rather than each nation "sticking to his own line and doing his own thing." Mr Trichet said coordination of national policies is a decision for EU ministers but he added that tax cuts aren't the best way forward, suggesting a focus on other ways to help the poorer elements of society. He said it is important to avoid the errors made after the first oil crisis in the 1970. "Don't make the production sector carry the whole burden of the oil price changes, the result would be to weaken the EU economy for many years to come."
Euro-zone entry
Mr Trichet also expressed disquiet about the level of some countries' budget deficits particularly given the "relatively long periods" they have been given to bring their deficits back below 3% as required by EU rules.
A number of MEPs were concerned about the entry of the newest member states to the euro. All of them are obliged to become part of the single currency once they meet the economic conditions laid down for entry. The so-called Maastricht criteria set down requirements for debt and deficit levels, inflation, interest rates and also require a stable currency for two years before joining. Some countries aim to join by 2007, others have said they are aiming for 2010, others will join later, but no dates have yet been set. Alexander Radwan (EPP-ED, DE) asked whether the new members "are sufficiently prepared and what would be the procedure" for joining. Mr Trichet said that all the rules and criteria will be "rigorously applied" and he called on all countries, including those already in the euro-zone to apply EU rules on fiscal and monetary policy.
Polish Socialist Dariusz Rosati raised concerns that efforts to bring the generally higher levels of inflation in the new Member States into line with the euro-zone requirements could lead to monetary problems, but Mr Trichet replied that he believed the effects could be absorbed.
Euro-zone interest rates set to remain stable
Mr Rosati also asked about interest rates. Trichet said that he isn't "preparing the market for an increase in rates or for a decrease but (the ECB) remains vigilant." He added that given current conditions the "present rates are appropriate." He stressed the need to maintain price stability as a "necessary condition for growth."
Source: European Parliament
The EUR extended gains vs. the USD yesterday after European Central Bank left interest rates unchanged at 4.0% as expected. Investors focused on the ECB President Trichet's comments where he stated that some governors at the bank would have supported a rate increase. The ECB President also added that the risk in financial markets is still evolving and is accompanied by continued uncertainty about the potential impact on the real economy. The EUR last traded 0.2% higher at $1.4627, after touching a session high of $1.4636.
[ Comment, Edit or Article Submission ]
