No relaxation in EU currency timetable, Bruton says

THE Taoiseach has opposed suggestions that there should be a relaxation of the single currency timetable in the European Union…

THE Taoiseach has opposed suggestions that there should be a relaxation of the single currency timetable in the European Union. Mr Bruton was speaking yesterday in Rome, where he met the Italian President, Mr Oscar Luigi Scalfaro, and the caretaker Prime Minister, Mr Lamberto Dini, for discussions aimed at preparing the Irish EU presidency, which follow's Italy's term in July.

Mr Dini had suggested that the timetable for the introduction of the new European currency might be delayed given the difficulties Italy (and other EU countries) had in meeting the strict Maastricht convergency" requirements. It would relieve governments of the huge deadline pressure created by the "euro" currency, a pressure which forces them to implement tough financial policies which might otherwise be postponed.

Mr Bruton said a relaxation would cause problems as "the [Maastricht] Treaty provisions are legally very clear and they say that the single currency begins on January 1st, 1999 . . . and there's not much room legally to get around that."

He expressed confidence in Italy's ability to handle the European Union presidency. "I believe that the Italian presidency will be very successful despite the political uncertainty [in Rome]. Mr Dini has a tremendous technical grasp of the issues facing the European Union at the moment, particularly the economic and monetary questions," Mr Bruton said.

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Mr Dini has been caretaker prime minister since his year long "technical" government resigned last week when it became clear that it no longer had a parliamentary majority. Despite the lack of Fan apparent resolution to the present crisis, it is still possible that Mr Dini will be offered a second government mandate to complete the Italian EU presidency.

The two heads of government identified unemployment, economic and monetary union and the fight against drug trafficking as among the priorities of both the Italian and Irish EU presidencies.

Mr Bruton recalled that the Madrid EU conference last month had given the Irish presidency a mandate to prepare a report on unemployment, adding that he and Mr Dini were agreed that monetary and economic union should not be seen as a negative process, but as something which can reinforce the fight against unemployment:

"There is no contradiction between realistic and tight financial policies ... and economic growth and Italy is showing that at the moment," Mr Bruton said.

Mr Bruton will have a private audience with Pope John Paul this morning, before returning to Dublin this afternoon.