Geneva, 24 September 1998 – The euro has shielded European Union countries from the Asian financial meltdown, Yves-Thibault de Silguy, the EU's Commissioner for Economic, Monetary and Financial Affairs, told a major business conference here today.

Even large British companies such as British Steel and ICI have announced they will be ready to pay suppliers in euros when it comes into operation on 1 January 1999, though the UK will not be joining the European Monetary Union from the start, he told the ICC Geneva Business Dialogue.

"All the economic simulations we have seen suggest that over time about 30% of world trade will be denominated in euros," he said. "Already investors are diversifying away from the US dollar to other international currencies, in particular the DM and the Yen. Already it has shielded our economies from the effects of external monetary turbulence in Asia and Russia."

The conference of some 450 international organization and business leaders was organized by the Paris-based International Chamber of Commerce to build cooperation between business and governments in meeting the challenges of the global economy.