Emu To Be On Schedule, Says Luxembourg Premier

ThePrime Minister of Luxembourg, Jean-Claude Juncker, said on Monday that European economic and monetary union will take place as scheduled in 1999. I dont think we will have a delay as far as the establishment of monetary union is concerned. Im fully convinced that we will start on the first of January 99, he said in an interview with Reuters Financial Television (RFTV) in Tokyo.

That said, some countries in the European Union (EU) may not qualify for economic and monetary union (EMU) by that date, he added. But I do think that we will have a significant group of member states which will qualify in due time, he said.

 

Juncker also said he expects EMU to result in greater tax harmonisation among countries, including convergence of tax policy towards corporate taxes and capital revenues on savings.

This is the case for the taxation of capital revenues for savings but this is also the case as far as corporate taxes are concerned, which do have their influence on competitiveness between national economies, he said. But Juncker stressed that harmonisation of European tax systems would be an incomplete gesture without social harmonisation.

We do need minimum standards as far as labour law is concerned, he said. In an internal market you need social harmonisation to the same degree you need tax harmonisation.

Asked about recent market jitters about the potential impact of EMU on the mark, Juncker said it is up to political leaders to reassure the worlds financial communities.

The worst thing we could do would be to add uncertainties to the uncertainties which do still exist, he said.