Italy should mull leaving euro - minister
European currency briefly falls on newspaper report
Updated: 8:20 a.m. ET June 3, 2005ROME - Italy should consider leaving
the single currency and reintroducing the lira, Welfare Minister
Roberto Maroni said in a newspaper interview on Friday.
Maroni is a front-line government minister but his views are not
believed to be shared by those with far greater sway over economic
policy, such as Prime Minister Silvio Berlusconi or Economy Minister
Domenico Siniscalco.
Maroni, a member of the euro-sceptical Northern League party, told the
Repubblica daily Italy should hold a referendum to decide whether to
return to the lira, at least temporarily.
He also said European Central Bank President Jean-Claude Trichet was
one of those chiefly responsible for the "disaster of the euro."
The euro "has proved inadequate in the face of the economic slowdown,
the loss of competitiveness and the job crisis," Maroni said.
In this situation, the answer is to give the government greater power
to defend national industry from foreign competition and "to give
control over the exchange rate back to the government."
The euro initially tumbled to $1.2220 from $1.2285 in a matter of
minutes as the report added to concerns about the European Union's
outlook -- politically and economically.
Maroni cited Britain as a virtuous example of a country whose economy
"grows and develops, maintaining control over its currency."
When it was put to Maroni that Trichet on Thursday dismissed the idea
that monetary union could break up, the minister replied: "Sure, he is
one of those chiefly responsible for the disaster of the euro."
He added Trichet should try to convince hard-pressed small Italian
businessmen that the euro was a success.
Maroni also dismissed the idea that Italy's struggling economy could
face an Argentina-style financial disaster if it abandoned the single
currency.
"We're already heading towards Argentina, that's why we have to change
direction," he said.
Three years ago Argentina defaulted on its public debt.
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