Ministers in currency talks

EU finance ministers, meeting today in Luxembourg, will continue their Verona debate on the relationship between the single currency and on proposals for a post monetary union stability pact.

They are due to receive progress reports from the Union's Monetary Committee and the European Monetary Institute on the technical preparations for EMU.

They are expected to give informal approval to the nomination of Mr Wim Duisenberg, currently the head of the Dutch Central Bank and of the Bank for International Settlements, as the next head of the European Monetary Institute.

Mr Duisenberg is expected to take over from Mr Alexandre Lamfalusy when the latter retires in the New Year. His appointment makes it likely he will then be the first head of the EMI's successor, the European Central Bank, when it is created in 1998.

The ministers are also meeting today at the annual general meeting of the European Investment Bank, the European Union's long term lending institution. But routine discussions will be frustrated by three British beef protest vetoes, most notably on plans to allow Commission fraud inspectors to make spot checks in the member states in consultation with their governments.

Britain has been up to now a strong advocate of cracking down on EU fraud and has been a supporter of the measures.

Officials had also been hoping to resolve a dispute between Belgium and the Netherlands on the interpretation of VAT regulations on cut flowers, with the former accusing the latter of "undercutting" their market.

Agreement, however, requires unanimity.

Beef is likely to make its way on to the ministers' menu in two other overlapping forms - a discussion of the financial perspectives and of the cost of BSE compensation measures. Both the Dutch and the Germans are likely to emphasise that the farm budget is now unlikely to show its predicted substantial surplus this year.

The finance ministers will also join the social affairs ministers for lunch to finalise their joint submission to the Florence summit, on June 21st and 22nd, on unemployment. They are due to hear detailed proposals from the Commission president, Mr Jacques Santer, on his Confidence Pact for Jobs.