Iraq war would damage economy

A war in Iraq would hurt the global economy, Europe’s top banker Wim Duisenberg said today.

European Central Bank President Duisenberg said on Dutch TV that he believed consumer confidence in the United States was already suffering due to uncertainty over a possible US attack on Iraq.

"A war is bad news for the economy," Duisenberg said.

He added that rising oil prices will also hurt consumers. The Bush administration says it has not yet decided whether it will use force to remove Iraqi dictator Saddam Hussein.

But it has said Iraq is in "material breach" of UN resolutions requiring disclosure of its weapons programmes, and has ordered the US military to prepare for a major build-up in the Persian Gulf.