French want new look at deal on euro

The new French government will this weekend light a fuse under the single currency by calling for a radical rethink of the agreed rule-book for the euro.

So far-reaching are the demands that the issue of monetary union is now expected to overshadow the European summit in Amsterdam in 10 days' time.

Some European leaders were even predicting last night that the summit, when Europe hopes to sign a new treaty, may have to be delayed. Lionel Jospin, the new Socialist French Prime Minister, let it be known at this week's European Socialist congress in the Swedish city of Malmo that he will seek to re-open the "stability pact", the detailed plan for governing the euro zone.

The pact, designed to German lines, was agreed after intensive negotiations at the Dublin summit in December and was due to receive final endorsement from all 15 heads of government at Amsterdam.

Mr Jospin now wants to renegotiate the pact in order to give greater emphasis to jobs and growth. France is also canvassing plans for a change to the Maastricht rules to create a powerful economic "government" which could set economic policy for Europe and act as a counterweight to the future European central bank. The ideas are expected to be raised at a dinner to be attended by European finance ministers in Luxembourg tomorrow.

Speaking in Malmo, Mr Jospin refused to comment directly on his ideas for the stability pact but stressed repeatedly the need for European monetary union to concentrate on creating jobs and promoting investment.

He also pointedly refused to endorse current Emu rules or its timetable. "On Emu we do not know what is going to happen. We must clarify the prospects there."

Any attempt by France to re-write the stability pact would be fiercely resisted by Germany, and a clash looks likely at a Franco-German summit next week, just three days before the Amsterdam meeting.

Germany has presented the stability pact to its public as a bulwark against a weak euro. Under the pact, countries who do not obey strict economic rules after the euro launch would be subject to a system of fines.

In particular, Germany would resist attempts to build an economic government which could undermine the independence of the Central Bank.

Theo Waigel, the German finance minister and chief architect of the pact, has already suffered a dent in credibility after his botched attempts to revalue German gold reserves in order to help the country meet the Maastrict criteria.

Mr Jospin is understood to be planning to call for the re-writing of the key article 103 in the Maastrict treaty in order to establish an economic government consisting of Europe's ministers for financial and social affairs.

French government sources say Mr Jospin is also considering a new borrowing programme to promote European reconstruction.

News
people
Arts and Entertainment
Joel Edgerton, John Turturro and Christian Bale in Exodus: Gods and Kings
filmDirector said film would 'never have been financed' with ethnic minority actors in key roles
News
people
Sport
footballArsenal 2 Borussia Dortmund 0: And they can still top the group
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
Arts and Entertainment
An unseen image of Kurt Cobain at home featured in the film 'Kurt Cobain: Montage of Heck'
film
News
Andy Murray with his girlfriend of nine years, Kim Sears who he has got engaged to
peopleWimbledon champion announces engagement to girlfriend Kim Sears
Arts and Entertainment
Jake Quickenden and Edwina Currie are joining the I'm A Celebrity...Get Me Out Of Here! camp
tv
Arts and Entertainment
George Mpanga has been shortlisted for the Critics’ Choice prize
music
News
Albert Camus (left) and Jean-Paul Sartre fell out in 1952 and did not speak again before Camus’s death
people
Arts and Entertainment
Roisin, James and Sanjay in the boardroom
tvReview: This week's failing project manager had to go
News
Ed Miliband visiting the Holocaust museum in Jerusalem. The Labour leader has spoken more openly of his heritage recently
newsAttacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But are the barbs more sinister?
Arts and Entertainment
'Felfie' (2014) by Alison Jackson
photographyNew exhibition shows how female creatives are changing the way women are portrayed in advertising
News
i100
Life and Style
Fright night: the board game dates back to at least 1890
life
Environment
The vaquita is being killed by fishermen trying to catch the totoaba fish, which is prized in China
environmentJust 97 of the 'world's cutest' sea mammals remain
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Junior Account Manager / Telesales - £24,000 OTE

£18000 - £24000 per annum: Recruitment Genius: Strong telesales or retail expe...

SThree: Trainee Recruitment Consultants

£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...

Recruitment Genius: Chief Engineer

£50000 - £55000 per annum: Recruitment Genius: A Chief Engineer is required to...

Recruitment Genius: Web Marketing Specialist

Negotiable: Recruitment Genius: One of the UK's leading Renewable Energy compa...

Day In a Page

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game
There's a Good Girl exhibition: How female creatives are changing the way women are portrayed in advertising

In pictures: There's a Good Girl exhibition

The new exhibition reveals how female creatives are changing the way women are portrayed in advertising
UK firm Biscuiteers is giving cookies a makeover - from advent calendars to doll's houses

UK firm Biscuiteers is giving cookies a makeover

It worked with cupcakes, doughnuts and macarons so no wonder someone decided to revamp the humble biscuit
Can SkySaga capture the Minecraft magic?

Can SkySaga capture the Minecraft magic?

It's no surprise that the building game born in Sweden in 2009 and now played by millions, has imitators keen to construct their own mega money-spinner
The King's School is way ahead of the pack when it comes to using the latest classroom technology

Staying connected: The King's School

The school in Cambridgeshire is ahead of the pack when it comes to using the latest classroom technology. Richard Garner discovers how teachers and pupils stay connected
Christmas 2014: 23 best women's perfumes

Festively fragrant: the best women's perfumes

Give a loved one a luxe fragrance this year or treat yourself to a sensual pick-me-up
Arsenal vs Borussia Dortmund: Alex Oxlade-Chamberlain celebrates century with trademark display of speed and intuition

Arsenal vs Borussia Dortmund

The Ox celebrates century with trademark display of speed and intuition
Billy Joe Saunders vs Chris Eubank Jnr: When two worlds collide

When two worlds collide

Traveller Billy Joe Saunders did not have a pampered public-school upbringing - unlike Saturday’s opponent Chris Eubank Jnr
Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

Our partner charities help veterans on the brink – and get them back on their feet
Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

Putin’s far-right ambition

Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

Escape to Moominland

What was the inspiration for Finland's most famous family?