MADRID. Dec 31: The euro will represent 30 per cent of world trade. EU Monetary Affairs Commissioner Yves-Thibault De Silguy said in an interview published today, reports AFP.

"The dollar is used for 80 per cent of financial transactions in the world and for 50 per cent of trade transactions.

"In the future the euro will represent 30 per cent of trade, on the basis of estimates which do not appear to be exaggerated." he told the newspaper El Mundo, two days before the launch of the single currency.

The euro offered the possibility of trying to rebuild the Bretton-Woods system of managed exchange rates which had collapsed in 1971 when .the United States ended conversion of the dollar into gold, he said.

De Silguy said that the two outstanding challenges were coordination of economic policies in the euro zone and an untroubled transitional period until notes and coins were replaced by euro money in 2002.

"We must work to ensure that Mrs Gonzalez acquires the habit of handling euros and no longer fears that shopkeepers will round prices upwards. That could take 40 years if efforts at communications are not made." he said.

Meanwhile, another report from. Paris says: The euro zone

is heading for growth in 1999 of 2.25 to 2.50 per cent, the President of the European Central Bank (ECB), Wim Duisenberg, said in remarks published on Wednesday.

Duisenberg also told the newspaper Le Monde that he wanted to see a stable relatlon-

ship between the euro and the dollar.

Duisenberg warned that countries in the euro zone were not reducing public deficits quickly enough.

The rate of reduction towards zero was particularly slow given that the zone was experiencing growth, and even though growth was less than had been expected, it remained firm.

Duisenberg also repeated that he would not resign as President of the ECB in four years time.

The President of the ECB is appointed for eight years but when Duisenberg was appointed. after extremely tough negotiations because France had put forward a rival candidate. Jean-Claude Trichet, French President Jacques Chirac said on May 2 that Duisenberg had agreed to resign after four years to make way for Trichet. currently the French central bank Psesident.

At the time Duisenberg agreed to write to leaders of the 15 European Union countries saying that he did not want to serve a full term of eight years, but would stay in office at least until euro notes and coins were introduced in 2002.

However, asked by Le Monde if he would resign after four years Duisenberg said: The reply is no."