THE PRESIDENT of the European Central Bank has said the continued success of the euro will depend on how the EU faces the major challenges ahead.

In Strasbourg yesterday on the 10th anniversary of the euro, Jean-Claude Trichet said that while there was cause for celebration, the EU could not afford to be complacent about its currency.

Ten years ago this month, the euro became the official currency of the EU. It was adopted by 11 countries and came into use two years later.

Sixteen countries are now part of the euro zone. Mr Trichet said the euro had enhanced price transparency and stability, increased trade and promoted economic and financial integration within the euro zone.

"The financial crisis is demonstrating that in turbulent waters it is better to be on a large, solid and steady ship rather than on a small vessel."

However, Mr Trichet said there were major challenges ahead for the currency. The financial crisis had revealed fundamental weaknesses in the global financial system, he said, and a lot remained to be done to redesign the regulatory and institutional framework.