Euro launch 'will lift growth'

EUROPEAN Central Bank chief Wim Duisenberg today confidently predicted the euro-zone's sluggish economic growth will pick up next year, boosted by the introduction of the single currency.

On the eve of the launch of euro notes and coins in 12 EU states, Duisenberg also confirmed he intends to remain in office throughout 2002.

'We've seen in the run-up to today a huge wave of enthusiasm of spending of old currency, and I'm sure businesses will continue to benefit from this,' he said.' We expect euro- zone growth to pick up next year and we think that euro cash will facilitate that.'

Asked to confirm remarks made to Dutch television that he planned to stay at the ECB's helm until the same time next year, Duisenberg said 'Oh yes!'

France claims the Dutchman agreed to step down next May for a French candidate.

Earlier today, the Labour leader in the European Parliament, Simon Murphy, urged Chancellor Gordon Brown to make an early assessment of the five economic tests that will decide whether the Government puts the question of euro entry to a referendum.

'Britain's decision to join the euro is inevitable,' said Murphy. 'And that view is shared by the majority of the British public. Opinion poll after opinion poll shows that while many people oppose our membership of the euro, even more think that we will join.'

Warning that both profits and jobs were being lost by staying outside the single currency, Murphy said: 'We may be warming up for a euro referendum, but the game goes on without us and sitting on the sidelines is not cost-free.'

His comments come a day after Europe minister Peter Hain branded europhiles demanding rapid British entry to the single currency 'crazy'.