Euro-zone finance ministers met in Brussels last night amid signs of increased EU determination to curb the rising euro, following last weekend's meeting of the group of seven (G7) leading industrialised nations in Florida.
The euro fell against the dollar yesterday after Dow Jones reported an EU official as saying that euro-zone finance ministers would discuss "all possible ways" to combat euro gains.
The ministers expressed satisfaction with a communiqué issued after the G7 meeting which warned that "excess volatility and disorderly movements in exchange rates" were undesirable for economic growth.
The Minister for Finance, Mr McCreevy, who chaired last night's meeting, said afterwards that the G7 statement "embodies the position" adopted last month in a joint declaration on the euro by euro-zone finance ministers, the European Commission and the European Central Bank (ECB).
EU governments and policy-makers are divided about the need for a weaker euro, with France and Germany warning of the effect on exports while some central bankers argue that a strong euro is good for the economy because it helps to keep inflation low.
The ministers will be joined today by their EU counterparts from outside the euro zone for a formal meeting of Ecofin.
Mr McCreevy said yesterday that the next three Ecofin meetings would focus on the EU's Lisbon agenda for increased competitiveness.
"It is very important that we push forward energetically with this Lisbon programme that aims to make the EU the world's most competitive knowledge-based economy by 2010," he said.
Today's meeting will also examine the stability programmes for Ireland, Greece, France, Italy, Luxembourg, the Netherlands and the United Kingdom. Mr McCreevy said he expected the Irish programme to be well received.
"The Council attaches great importance to examining member states' performance under the Pact.
"These examinations serve to encourage improved economic and budgetary performance by member states, in which we all have a common interest," he said.
The ministers will also discuss the appointment of a successor to Mr Domingo Solans on the executive board of the ECB. Last night, Belgium proposed Mr Peter Praet, a director of its central bank, for the job.
The Government has proposed Mr Michael Tutty, a vice-president of the European Investment Bank, but Mr McCreevy suggested that further nominations could be made before a final decision in March.
France is today expected to renew its call for a reduced VAT rate on restaurants, although the French president, Mr Jacques Chirac, yesterday failed to win the support of his German counterpart, Mr Gerhard Schroeder, for the proposal.
However, "France is sticking to its stance", Mr Chirac said.
Decisions to deviate from the EU's 15 per cent minimum VAT rate require the unanimous approval of all the member-states.
