FRESH doubts over European Monetary Union arose yesterday after a senior German politician indicated his government was making contingency plans in the event that the single currency did not start as planned in 1999. "Of course we are thinking about it," said Mr Wolfgang Schauble, the leader of the ruling Christian Democrats' parliamentary group.

In remarks published in the Wall Street Journal, Mr Schauble stressed that he believed it was still possible for monetary union to be launched in January 1999. He said that if politicians began to project, "people will no longer believe that it can be done?"

However, his admission that Germany is contemplating the possibility of a delay followed the publication of an opinion poll last week that showed more than 80 per cent of Germans opposed to a 1999 launch. Moreover, according to the government's own forecasts, Germany will not meet the Maastricht Treaty's criteria this year on the low budget deficits required to qualify for monetary union.

The President of the European Commission, Mr Jacques Santer, said he expected seven to nine of the EU's 15 member states to meet the January 1999 deadline for monetary union.