MEMBERS of the European parliament have rallied behind a new report by Jules Maaten, a Dutch liberal, calling for a concerted campaign to convince the public of the benefits of the euro.

It is no surprise that the currency suffers from a popularity deficit in some eurozone countries.

There are two main reasons for this — neither of which has anything to do with the lack of a communications strategy.

First, the perception that the introduction of the euro has resulted in increasing inflation in member states has done serious damage to its image, even though, according to official figures, only 0.2% of the rise is attributable to the euro.

This average figure disguises large price increases for many popular products and services such as coffee, vegetables, bread and hairdressing, largely due to opportunistic marking up or rounding off during the changeover.

Second, citizens’ attitudes to the euro reflect the economic situations in their own countries and their insecurities about the future, pensions, jobs for their children and many other issues.

While the euro can help promote economic growth, it cannot do that unless there are sensible fiscal policies and sound economic management in use in each member state.

The euro can be the icing on the cake of sound economic management, but no amount of propaganda or spin can ever sell it on its own.

We need to focus urgently on economic reform, especially in countries with unacceptably high unemployment and abysmal growth rates, in order to deliver on the Lisbon promises to make the EU the most competitive and dynamic knowledge-driven economy by 2010. There is no point just coming out with the same tired old rhetoric.

Tony Blair, the new president-in-office, in his speech to the European parliament, rightly focused on this as a priority and on the illiberal so-called European social model, which protects the privileged and does nothing to create jobs and investment, nor to increase economic growth.

Any publicity campaign will be a waste of time and money, unless it is in the context of sound economic management. The euro will continue to be the scapegoat for member states’ own failures.

The credibility of our single currency, its public image and acceptance, depend on all member states adhering fully to the stability and growth pact and the rules being applied evenly under the agreement.

The revised and, we hope, robust pact should remove the lack of even-handedness we have seen previously in chastising errant member states.

It is no coincidence that the euro has been fully accepted in Ireland. We had a successful changeover programme, but, more importantly, we have 4% unemployment, less than half the EU average, and our economic growth is approaching 6%, three times the EU average.

We are very willing to help new member states with their changeover preparations and already have mentoring arrangements in place with Cyprus and Malta to share details of our knowledge and experience.

European monetary union is a very successful pan-European project for trade, travel and price transparency, and the euro has become an international reserve currency. We don’t need to sell the euro, we need to sell economic reform.

Avril Doyle,
Fine Gael MEP for the East constituency