Speaking at the second plenary session on ``India and Europe - the next steps'' organised as part of the partnership summit 1999, Poncet said that Europe had now become a ``strong political body'' having largest share in the world trade. He however clarified in reply to a question from Jamshed Godrej that euro was no challenge to the dollar. In fact, euro was the first step in the unity-making process, he said. The objective of the new single currency was more political.

Poncet said that ``change was the buzzword'' everywhere in the world today and the birth of euro would result in a change in the world monetary system. The whole idea behind launching the new currency was to have a ``better balance''. There would be a stability in the exchange rate and the zone would become larger in size.

Former unionminister Rajesh Pilot, who also spoke on the occasion, said that for better business relations with Europe more emphasis would have to be given on the equality factor. On reforms he said that slow opening was always good. He stressed the need for a consensus among the main political parties for economic development.