Quinn considers deferral of EMU

OF France or Germany fail to qualify for monetary union the project may be postponed, but most one year, according to the Minister for Finance, Mr Quinn. In a far ranging speech outlining Ireland's stance towards monetary union, Mr Quinn made a spirited defence of Ireland's pro EMU stance.

Responding to questions after his submission on EMU to the Oireachtas Select Committee on Finance and General Affairs, he said the treaty refers to a "critical mass" of members and that if that "critical number does not emerge, it is probable that the project will be postponed for a year".

The likely critical mass would be France and Germany as well as two or three other countries, he agreed.

He added that there was no likelihood of a suspension or a long postponement which could jeopardise the whole process and cause "considerable political embarrassment".

Mr Quinn also insisted that one of the main advantages of Irish representation on a European Central Bank would be the difficulties the larger European players would then have of isolating Ireland.

In a barely concealed criticism of the Bundesbank's lack of support in the currency crisis over two years ago, Mr Quinn said: "That is absolutely why we are so committed and want a European central bank and not a dominant national one that takes decisions in the interest of just one country.

"If Ireland is a member of the euro, it will be a member of the policy making committee of the ECB (European Central Bank)."

He added that it was "our objective that we will participate in the first rank" of monetary union. "Those countries which are not involved will be excluded from the decision making process," he said. "Because we are a small open economy, it is vital we participate."

Speaking to the committee later, Dr Garret FitzGerald also called for Ireland to go ahead with plans to participate although he cautioned the TDs on the problems of moving too quickly.

But Mr David Graft on, former Labour economic consultant, caused probably the biggest stir with his apocalyptic predictions on unemployment following any move to a single currency.