EURO FX IS IMPORTANT INDICATOR FOR ECB POLICY
NOM./REAL EMU INTEREST RATES 'RELATIVELY LOW'
EMU MONETARY/FIN. CONDITIONS FAVORABLE FOR GDP
ECB INTERVENED WHEN EURO FX DIDN'T MATCH FUNDMTL
TRICHET URGES FRANCE PUBLIC SPENDING BE CUT UNDER 50% OF GDP
NEED SOUND FISCAL POLICY, DEFICIT CUTS
MUST MAINTAIN/CONSOLIDATE EMU COST COMPETITIVENESS
MUST MONITOR UNIT PRODUCTION COSTS CLOSELY FOR GROWTH