The European Commission President Mr Romano Prodi was quoted today as saying he feared the euro's introduction into circulation next year could lead to a weakening in the external value of Europe's single currency.
German newsmagazine
Focus
said Mr Prodi warned a group of leading European executives in Brussels last week there were fears Eastern Europeans holding German marks would exchange their cash for dollars rather than euros - and that could weaken the euro.
A spokeswoman for the EU in Brussels had no immediate comment.
Mr Prodi reportedly told the managers that more than 100 billion marks of the 280 billion marks in circulation were held outside Germany's borders - mostly in Eastern Europe.
He said this money would be exchanged into dollars and prove to be a further burden on the weakening euro exchange rate.
Healso told the managers that the rising inflation in Europe posed a genuine threat for the euro's value.
Mr Prodiis currently on a tour of Co Kerry with the Taoiseach, Mr Ahern, as part of his visit to Ireland.