Renault Says single European Currency is Necessary

10/15/96

Reuters has reported that Louis Schweitzer, chairman of Renault, said that a single European currency should be established as soon as possible: "We've chosen to be part of a common market. I'm convinced... that a single European market which does not have a single currency isn't something that can function over the long time."

"I'm convinced we need to go toward a single currency as quickly as possible and we mustn't miss the January 1, 1999, deadline," he said.

Schweitzer cited the recent effects of currency imbalances in Europe to support his message. His position, in regards to the European currency, puts him at odds with PSA Peugeot Citroen chairman Jacques Calvet, who argues that Europe needs political union before it seeks monetary union. Both Renault and Peugeot have been badly hurt by currency turmoil in Europe, especially the relative weakness of the Italian lira compared to the French franc.

Paul Dever -- The Auto Channel