Lidstaten oefenen druk uit op ECB om via renteverlaging de eurokoers te stabiliseren (en)

Pressure is mounting on the President of the European Central Bank (ECB), Jean-Claude Trichet, to act to halt the instability of the euro.

Although the euro dropped slightly against the dollar in trading yesterday, it continues to hover near record levels and has risen in value by 15 percent in the past four months against the greenback.

The majority of analysts are confident that Mr Trichet will leave the bank's interest rates of two percent on hold but his comments on the euro's strength will be closely followed. It is thought he will stress the need for a strong but stable currency.

Pressure from Belgium

Belgium's Prime Minister Guy Verhofstadt increased the pressure on the bank yesterday by calling for an interest rate cut.

In comments published in the Financial Times Deutschland, Mr Verhofstadt said, "interest rate cuts cannot solve all problems but they can help to reduce the large inequalities between the euro and the dollar". It would be "inevitable", added the Belgian premier, for the ECB to consider its interest rates if the euro continues to climb against the dollar.

Italians most sceptical about the euro

Meanwhile, a new poll today by Cetelem, a subsidiary of BNP Paribas, showed that euro zone citizens are increasingly sceptical about their new currency.

The survey - revealed in the Financial Times - demonstrated that 59 percent of people in the 12 country zone said that there were disadvantages to the single currency. This has risen sharply from 33 percent in 1999.

According to the FT, Italians were the most sceptical, with 78 percent unfavourable to the euro, closely followed by the Germans.

But not all euro zone citizens dislike their new money. About two-thirds of Belgians feel positive about the euro.

Cetelem interviewed 5,000 people in October and November from seven EU countries - Belgium, Britain, France, Germany, Italy, Portugal and Spain.