A LEADING academic has said that Spain has a promising future inside the Single European Monetary Union.
Speaking yesterday at the International Mediterranean Conference in Palma, Dr. Luis Rivera explained that although initial statistics are unfavourable, the long term prospects look good for Spain. The short term has not been great, but in the long run the overall global impact for Spain is very positive. You could say that unemployment is down, but I don't know if you can relate that to the Euro, he added.
A member of the School of Business at Dowling College in New York, Dr. Rivera gave a lecture yesterday at the Hotel Saratoga as part of the annual Mediterranean Conference in Palma.
Asked before his talk about the Spanish reaction to the Euro he told the Bulletin that: As far as I've seen the Euro has been accepted in Spain.
But added jokingly: I guess they have no choice though.
In 2002, 12 out of 15 EU countries entered the Single Monetary Union. Rivera said that the transition is not always easy: It's a difficult thing to leave one currency for another.
There is certain national pride at having one's own currency.
He believes it is wrong for Britain to resist the Euro, but predicted that as time goes on it will be accepted.
It's in their best interest to have a common currency.
The long term impact would be much better for them, he added.
His comments come at a time when opinion polls show that Britons are increasingly sceptical about further European integration.
Rivera's lecture, titled The Adoption of the Euro and its Impact on Spain, explained the advantages of sticking with the Euro. One being that the Euro eliminates exchange rate uncertainties. In the past with different currencies you could hedge against some of these uncertainties, but you never had a perfect hedge. By eliminating the exchange rate you don't have this problem, he said. Day two of the conference continues today at the Saratoga Hotel, with the following day's lectures held at the Soller Museum.