Issing's testimony to the European Parliament

Speaking in front of the European Parliament's economic and monetary affairs committee, European Central Bank chief economist Otmar Issing said "I fully understand the intentions of the Commission."

"I think the Commission's focus is strengthening the procedures within present regulations - and this has to be supported."

German professor Issing admitted a need to "strengthen the non-political side of the Stability and Growth Pact" - yet conceded the set rules governing the European single currency would "always remain a political decision".

Issing also reiterated that the ECB is "concerned about excessive movements in the exchange rate".

But he added: "Although recent exchange rate developments are likely to have some dampening effects on euro area exports, export growth should continue to benefit from the dynamic expansion of the world economy."

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Introductory statement by Professor Otmar Issing, Member of the Executive Board of the European Central Bank, Brussels, 20 January 2004.

Testimony before the Committee on Economic and Monetary Affairs of the European Parliament