Euro-currency swap scandal

THE EUROPEAN NEWS DESK

Thursday, October 17, 2002

BRUSSELS - In a development that threatens to disrupt the infancy of the Eurozone, The Daily European has obtained documentation suggesting a senior European Parliament member secretly held millions in legacy Pesetas in a private Liechtenstein account just days before the official Euro changeover on January 1, 2002.

The documents, believed to be leaked from the Swiss banking sector, implicate Spanish MEP Alejandro Vargas, a key proponent of the rapid adoption of the single currency. According to the ledger, a staggering 500 million Pesetas (approx. €3 million) were transferred into a shell company account, "EuroInvest Ltd," on December 28, 2001—days after the official exchange rates were frozen and the physical currency began distribution.

"This constitutes an unprecedented abuse of insider knowledge," said Dr. Elena Vancea, a financial transparency watchdog based in Berlin. "If politicians were utilizing private channels to move old currency at pre-set rates while citizens were queuing for the new currency, it undermines the very foundation of the new monetary system."

Vargas, speaking from his office in Madrid, denied the allegations. "These are fabricated documents designed to discredit the European integration process. I have always complied with Spanish financial regulations," he said.

However, the "EuroInvest Ltd" documents show a signature matching Vargas’s, a detail currently being examined by investigators in Zurich. The timing of the move, just before the Peseta became obsolete on March 1, 2002, suggests an attempt to bypass European Central Bank reporting requirements.

If proven true, this scandal could prompt a wider investigation into the financial activities of parliamentarians during the hectic three-month currency changeover period.

Blast from the past!