It was a chastening week for incoming European Commission president Romano Prodi, when remarks he made to representatives of the Italian chemical industry caused a slide in the euro.

At the very time when the euro needed all the support it could get and politicians were congratulating themselves on having agreed a safe pair of hands at the head of the new Commission, the row was the last thing Mr Prodi or the EU needed.

Initial reports portrayed his comments as suggesting that Italy could be forced to drop out of the euro because of a lack of industrial competitiveness

Mr Prodi complained he comments were taken out of context and, indeed, it appears that as a former Italian prime minister addressing a domestic audience, he was more concerned with ensuring Italy did not lower its guard on economic reform and progress rather than knocking the EMU.

What is certain is that, having been bitten once, he will be much more circumspect in future, knowing as he now does the potential of any comment by him to disturb the delicate balance of the markets.