Germany backs launch date

The German government has attempted to dampen speculation about a possible postponement of Economic and Monetary Union (EMU) after Bundesbank president Dr Hans Tietmeyer said that a delayed launch would not be a disaster. Last night leaders of Chancellor Dr Kohl's Christian Democrats (CDU) and Finance Minister Mr Theo Waigel's Bavarian Christian Social Union (CSU) said after four-hour strategy talks here that they were united in their drive to create the euro.

"The CDU and CSU are united in the goal of starting the European currency union with strict observation of the entry criteria on January 1st, 1999," Mr Waigel told reporters after the meeting, reading from a joint statement.

Mr Waigel said he also saw "a realistic chance" of a sufficient number of countries qualifying for EMU to go ahead as planned.

Mr Waigel's statements followed an interview published in the weekly Die Woche yesterday, in which Dr Tietmeyer called for a strict interpretation of the economic criteria for entry to EMU.

"I simply cannot follow some arguments which I have heard recently that in the case of a delay of the euro the sky would fall in over Europe or that the economy would fall apart," he said.

The government moved swiftly to quell speculation that a delay was imminent and Foreign Minister Mr Klaus Kinkel insisted that the project was on course.

"Nobody should feel uncertain. The euro must and will come punctually on January 1st, 1999, with strict adherence to the criteria agreed at Maastricht," he said.

Dr Tietmeyer's remarks came just as Chancellor Kohl's government thought the debate about the euro in Germany had died down. More than 50 leading economists came out in favour of the single currency last month and Eurosceptics such as the Social Democrat politician, Mr Gerhard Schroeder, and the Bavarian prime minister, Mr Edmund Stoiber, have become more muted in their criticism.

Dr Kohl takes little interest in economics but he regards EMU as a crucial building block of the integrated Europe he longs for.

The Chancellor's adviser on European policy, Mr Karl Lamers, said yesterday that, for Germany, the euro was more than just a coin.

"Germany has a particular interest in deepening European unity and a particular responsibility for it, because we are the largest European economy and monetary union is based on the German model. Moreover, it cannot be separated from political union. Some Eurosceptics, such as Margaret Thatcher, have recognised that, in their words "that goes to the heart of government", he said.