FT.com: EU Monetary union 'will still be a success'

FT.comEU Monetary union 'will still be a success'

Otmar Issing, an ECB executive board member, said that what was lacking to turn the eurozone into an "optimal currency union" was product and labour market flexibility. Crucially, the European Union had to push ahead with reforms to boost competitiveness. Meanwhile, Ulrich Kater, chief economist at DekaBank in Frankfurt, argued that the euro had failed to develop a "European identity". But Mr Issing countered that such an identity might take years to develop. In Germany, the popularity of the currency had been undermined by the perception that its introduction had led to price rises, "but hopefully this is fading out".