Kinkel Says Talk Of Emu Delay rresponsible'

German Foreign Minister Klaus Kinkel on Sunday attacked what he called irresponsible market speculation that Germany was seeking a delay of European monetary union and strongly reaffirmed that Bonn wanted the project to start as scheduled on January 1, 1999.

Kinkel said the launch of the single currency, or euro, was a question of fate for Europe and Germany, which both needed monetary union to remain competitive in a world of gigantic economic blocs and free trade areas.The stability criteria will not be undermined. The euro will be at least as hard as the mark. All worries relating to this are unjustified, Kinkel said in a statement.

 

His comments underlined a denial by the German finance ministry and the Bundesbank last Friday of market speculation that the German government may call for a two-year delay of the euro's launch. Kinkel said: Opponents of the euro are continuing their irresponsible actions. Speculation about the alleged intent of the Federal Government to delay the introduction of the third stage of Economic and Monetary Union (Emu) is unrealistic.

Whoever gives rise to that speculation risks causing turbulence on the financial markets and unsettling citizens in Europe. Apparently the aim is to sow uncertainty.

Italian Prime Minister Romano Prodi said on Friday he thought it was possible that Germany would seek a delay but swiftly issued a clarification saying there was no assumption whatever that the timetable for Emu would be put back.

Bundesbank officials last week reiterated their warning that any softening of the Maastricht Treaty criteria on economic convergence among European Union members would undermine the stability of the single currency and put the whole project in jeopardy.

The Federal Government will not sacrifice the stable mark for a softer European currency, Kinkel said.