Success of the euro depends on structural reforms to push forward a free-enterprise and open economy and minimise the dangers of a single interest rate, according to OECD economist Mr Patrick Lenain.

Judging that the introduction of euro notes and coins has been generally smooth, he says more economic convergence is needed in the euro zone before monetary integration is a success.

In an article in the most recent edition of the Organisation for Economic Co-operation and Development (OECD) Observer magazine, he writes: "Monetary union brings its sacrifices, including the loss of autonomy with respect to exchange rate and monetary policies.

"As matters stand, there is some evidence that the euro-zone economies sharing the same currency should not be too dissimilar, otherwise, it would be better to retain autonomous policy instruments."

Mr Lenain did not mention Britain, which has not adopted the euro and where there is widespread concern that an interest rate set for 12 countries might prove damaging to Britain should it become the 13th euro-zone member.

In Britain, concern focuses on the structure of the economy, which is heavily dependent on financial services, is linked to oil and has a cyclical connection with the US economy.

However, a recent OECD report suggested that the exchange rate of sterling now shadowed the euro more closely than the dollar. - (AFP)

Wedgwood wins the right to smash copies

WEDGWOOD has won a legal battle to have thousands of lookalikes of one of its best selling designs destroyed.

The lookalikes, trading under the name Cornfield, were believed to be of Asian origin and bore a substantial similarity to Wedgwood's Cornucopia pattern.

Wedgwood took legal proceedings against Bromac Importers and Distributors of Ballycastle, near Belfast, after it was found that tableware bearing the lookalike pattern was on sale in the North under the Cornfield name.

Bromac undertook to remove all Cornfield products from sale and to cease using the product.

The company also agreed to forward all Cornfield items in their possession to Wedgwood, whose group sales director Mr Tim Harper ceremoniously smashed thousands of them with a hammer yesterday, and to pay its legal costs, according to Wedgwood.

Wedgwood also got undertakings from London-based dealers International Trading 2000 Ltd, which also traded in the Cornfield goods.