Bruton warns of single currency problems

Britain's refusal to join the European single currency is set to pose significant problems to the increasing range of cross-Border co-operation arising from the peace process, the leader of Fine Gael, Mr John Bruton, has warned. Mr Bruton, who was in Brussels yesterday to meet commissioners and EU officials, called on the EU and both the Irish and British governments to "immediately tackle the potentially serious barriers to the development of North-South bodies". He urged an immediate study of the effect of the single currency on competitiveness of Border businesses.

"The integration of key economic activities on the island of Ireland must, in parallel with all other objectives of the Good Friday Agreement, be advanced in order to harness the economic dividends that will undoubtedly flow from peace," he said. History had shown, he said, that peace would be fostered by greater economic interdependence.

Yet the Border would be one of only two land frontiers in the Union between euro and non-euro economies, he said. "While most economic commentators agree that EMU membership will be positive for the Irish economy, the impact in the Border areas is less certain," he said.

Mr Bruton, who was on a fact-finding mission ahead of next year's European elections, met the Commission President, Mr Jacques Santer, as well as the Commissioners for Agriculture, Economic Affairs, and Environment, Mr Franz Fischler, Mr Yves Thibault de Silguy and Ms Ritt Bjeregaard.

At his meeting with Mr Fischler he was accompanied by the party's agriculture spokesman, Mr Paul Connaughton.

Mr Bruton said he had been reassured that Ireland would still be able to avail of Cohesion funding until 2003 and substantial structural funding after 1999. But he warned that the next round of structural funding would be "the last opportunity for Ireland to get help to modernise its infrastructure for a rapidly increasing number of homes and families". "The number of homes in Ireland will increase by 40 per cent in the next 12 years. This requires more roads, more schools, more recycling of waste, more serviced building land, more buses and more trains. This is a vast programme. It must be planned properly," he said, emphasising the particular need to develop public transport.

Mr Bruton also warned that Ireland was facing a number of serious environmental clashes with the EU - the country was over-dependent on landfill disposal of waste and faced legal action under the waste directive. And Ireland's legally binding international commitment by 2010 to curb CO2 emissions at 13 per cent over the 1990 level was already a problem. Because of the country's growth rate the 13 per cent ceiling had already been hit. Mr Bruton will today meet Fine Gael MEPs and colleagues from the European People's Party.