TEHRAN The introduction of euro as a common currency in Europe is a major step and Iran should be the first to start oil transactions in euro, an economist said. Talking to the TEHRAN TIMES, he said, Euro will provide the necessary ground for coordination and concerted action by the European countries. The European Union (EU), for the first time since it was established in 1957, has taken a concrete step towards a healthy economy in the entire continent, he said.

Besides a common currency, there will be a European Central Bank which will shape the overall economic policies of these countries, he noted. Above all, the low rate of interest that has been fixed at three percent is the most important outcome, he said, adding that the low interest rate will provide incentives to the prospective investors. For example, he said, In England, the official interest rate stands at 6 percent, which has an adverse impact on the investment.

Britain did not join its other 11 partners in the EU because of its own reasons. First, he said, the Britishers want to see whether the scheme of common currency will succeed or not. You know, the EU has a three-year experimental process and the period is enough to prove whether the common currency works or not, he said, and pointed out that only then Britain will decide on the issue.

Besides the common currency, the EU members will also introduce a common policy on taxes, which will help the economy of those countries. The policy of a common tax system will add to the importance of the European Parliament, if it is given the power to levy taxes, he said. Oil producing countries should start selling their black gold through euro, which will be a major blow to the U.S. dollar, he said and pointed out that those oil producing countries which are close to the U.S. would not switch from dollar to euro.

It's risky for Iran but it should start oil transactions in euro, he said.