March 19, 1998. Copyright, 1998. Graphic News. All rights reserved
European finance chiefs meet in York on eve of crucial EMU report
By Oliver Burkeman
LONDON, March 19, Graphic News: EUROPEAN finance ministers and central bank governors meet for a summit in York on Friday (20 March), five days before the European Commission announces which countries qualify to join European Monetary Union in the first phase in 1999.
BritainÕs Chancellor of the Exchequer, Gordon Brown, will chair the meeting. Among the visitors will be Bank of England Governor Eddie George, his German and French counterparts Hans Tietmeyer and Jean-Claude Trichet, and Commission president Jacques Santer.
Current Commission forecasts suggest that all members except Italy will meet the Maastricht limit of 3 per cent on budget deficits for 1998, though Britain, Denmark, Sweden and Greece will not introduce the currency this time round, and a solution to allow Italy to join is now almost certain. Meanwhile polls by the CommissionÕs Eurobarometer service show support rallying for the euro among all likely ÔinÕ states except Finland and Germany.
But Mr Brown Ð fresh from his well-received Budget on Tuesday Ð faces continuing disagreement at Ecofin over his countryÕs role in Euro-X, the council of nations adopting the euro. The UK insists that it must have a voice in all negotiations affecting the whole Union, but France and Germany are hostile to any attempts by ÔoutÕ countries to influence the currency policies of the ÔinsÕ.
The Chancellor is resigned to the likelihood of Euro-XÕs first meeting taking place during the current UK presidency of the EU. It is likely to be chaired by Austria, who take over the presidency in July.
Britain, however, will not emphasise monetary union at this weekendÕs meeting. Fallout from the financial crisis in Asia and plans to overhaul the EUÕs regional and agricultural aid policies will also be discussed.
/ENDS
Sources: Reuters, Eurostat, Eurobarometer