France calls for more time to consider euro rules

EU LEADERS will be involved in a frenetic series of meetings, starting today, to see whether a key element of the single currency plan can be ratified at next Monday's Amsterdam summit.

France yesterday called for more time to consider the rules which will apply to states inside monetary union. This cast doubt over whether the deal - agreed at December's Dublin summit - can be ratified as expected at next weekend's Amsterdam summit.

The new French Prime Minister, Mr Lionel Jospin, meets the Dutch Prime Minister, Mr Wim Kok, today and the EU Commission President, Mr Jacques Santer, tomorrow to try to broker a compromise.

At a meeting of EU Finance Minister's in Luxembourg yesterday, the French government signalled it might block the agreement on the rules governing the financial discipline inside monetary union - the so called Stability Pact. It said it would not agree to the pact unless member states agreed to enhance economic co operation, particularly in the fight for jobs, and also said it needed more time to consider the pact.

However, the French Finance Minister, Mr Dominique Strauss Kahn, also gave fellow ministers the reassurances they hoped for on France's commitment to the single currency. He said Paris was determined to see the euro launched on time and with no fudging of the Maastricht criteria.

Mr Strauss Kahn also made clear that France would not seek any wholesale renegotiation of the Stability Pact.

Last night, the Minister for Finance, Mr Quinn, expressed confidence that a deal with the French would still be possible in time for the summit.

On currency markets yesterday, the pound strengthened against the deutschmark and sterling as the latest events caused fresh jitters about the single currency.

The pound closed at 92.40p, from 91.33p on Friday, and at 2.5800 deutschmarks, from 2.5705. But the pound's strength failed to take all the pressure off interest rates as the markets remain nervous about a delay in the EMU timetable.