Major and Dini warn of EU monetary chaos
Thursday 07 December 1995
The two leaders, meeting in Florence, appeared to find common cause in discussing the two biggest economies likely to be sidelined in the moves towards a single European currency - Britain because it is reluctant to join, Italy because its economy is unlikely to be strong enough.
Political sources at the summit said that the two countries, along with France, would press for a detailed analysis of EMU at next week's summit in Madrid.
Both leaders noted that only a minority of member-states is likely to meet the criteria for monetary union laid down by the Maastricht treaty, and that plans must therefore be made for the countries left out.
"Monetary union will affect everybody whether they take part in it or not," Mr Major said. "If it proceeds, or when it proceeds, it has got to be right, otherwise it will cause chaos and difficulty across Europe."
With France hit by a growing wave of strikes as a direct result of its efforts to meet the Maastricht criteria, countries across the EU are becoming painfully aware of the dangers of imposing excessively austere strictures on their economies at a time of recessionary hangover and generally slow growth.
Commissioning a detailed analysis of monetary union - covering import and export markets, foreign exchange trading, agricultural policy and possible social problems - would force the EU to address the mounting difficulties facing its single currency project and perhaps create mechanisms for non-qualifying countries to join after the present 1999 deadline.
Mr Dini denied that the joint platform was an attempt to delay monetary union, saying there were still two years to go before the third and final phase of the process got under way. But Mr Dini knows, despite his protestations to the contrary, that Italy could never meet the criteria as they stand and that his country's best hope is to find a back door by which to enter after 1999.
- 1 Saudi Arabia mosque bombing: Two volunteer security guards hailed as heroes for stopping Isis suicide bomber reaching worshippers
- 2 Maisie Williams has an excellent message for one confused fan
- 3 There is something wrong but very right about this Bible illustration
- 4 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 5 Tampon tax scrapped in Canada after petition convinces conservative government
Saudi Arabia mosque bombing: Two volunteer security guards hailed as heroes for stopping Isis suicide bomber reaching worshippers
Maisie Williams has an excellent message for one confused fan
Archaeologists discover 2,400-year-old gold bongs in Russia
Tampon tax scrapped in Canada after petition convinces conservative government
Migrants in Kos: Photos show real tragedy after British tourists complain of 'awkward' holidays
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
A nation of inequality: How the UK is failing to feed its most vulnerable people
Australian man punched in the face for defending Muslim women from abuse on train
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
£16500 - £18500 per annum: Recruitment Genius: One of the leading Mercedes-Ben...
£27500 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£19500 - £23500 per annum: Recruitment Genius: Experienced B2B Telemarketer wa...
Negotiable: Recruitment Genius: This global company are looking for two Showro...