Prodi lets euro sign gain currency

Date: 28/05/03

By Peter Chapman

FIRMS using the euro symbol on their logos, advertisements or merchandise are unlikely to face a legal rap, European Commission President Romano Prodi has announced.

His comments follow claims from MEPs that the euro symbol is so common that the single currency's prestige is at risk.

Greek deputy Stavros Xarchakos said the power of authorising use of the euro sign, along with other EU symbols, should be handed to a special body to ensure that they are not "devalued".

But Prodi said he was happy for people to go on using the symbol - which is the copyright of the Commission because it was invented by its staff - provided they do not abuse the privilege.

"The Commission wishes to encourage its use," said Prodi, "but it does not tolerate any kind of exclusive use by any party whatsoever.

"The use it wishes to encourage is its use as a currency denominator," said the Commission chief, adding: "any other kind of use would have to be assessed on a case-by-case basis."

This would include the use - and subsequent trade marking - of the symbol in an "identical" or "confusingly similar sign".

Prodi's comments on the euro symbol coincide with the improved performance of the real thing.

Commission spokesman Gerassimos Thomas said its success had not been met with ceremony in Brussels, despite the protracted debate about the euro's initial feeble performance on currency markets.

He said the strength of the currency would help keep a lid on inflation in the Union because it would offset increased oil prices denominated in dollars and would lower the price of imported goods and services.

Lower inflation means an overall increase in the purchasing power of EU citizens, he added.

Pedro Solbes, the commissioner for economic and monetary affairs, said earlier that the Commission was more focused on the speed of the euro's rise and its market volatility than its actual levels.

The single currency reached a record level of 1.1933 on Tuesday (27 May) beating the previous high of 1.1886 on 4 January 1999, the currency's first day of trading.

The currency is up 11 against the dollar as more investors put money into countries with higher interest rates.

Experts said a 2 decline in the dollar versus the euro last week was a result of comments by US Treasury Secretary John Snow, who suggested that Washington was content to see the dollar weaken.

Romano Prodi, President of the European Commission, has rejected calls to establish a special body to authorise the use of the euro symbol.