The euro settled at slightly lower levels in early trade, after initially falling back sharply on calls by an Italian minister for the country to readopt the lira in parallel with the euro, dealers said. "The comment has had an initial impact. It has triggered quite a sharp pullback in (euro/dollar) this morning," said Ian Stannard, senior currency strategist at BNP Paribas. In an interview with the daily La Repubblica, Welfare Minister Roberto Maroni said Italy should consider introducting a temporary dual circulation of the euro and the lira, given that the switch to the single currency has failed to tackle the country's economic slowdown and a decline in competitiveness. But Stannard added that the market's initial reaction was something of a "knee-jerk" one, given the Italian government's record for blaming the euro for the country's economic problems and the fact that Maroni belongs to the pro-secessionist Northern League party.