THE German Finance Minister, Mr Theo Waigel, has admitted publicly for the first time that Germany will press ahead with participation in the single currency even if it fails to meet key criteria.
Speaking to journalists at the informal EU Finance Ministers meeting in this Dutch town on Saturday evening, Mr Waigel said he "would not be nailed to the cross of 3 per cent", referring to the key deficit criteria in the Maastricht treaty.
The admission marks a decisive shift in Germany's public position and makes it virtually certain the single currency will now be launched on time.
Mr Wengel's statement will be seen as an attempt to calm nerves in the markets following intense speculation that Germany's record unemployment and sluggish growth would see it missing the 3 per cent deficit target for 1997, by a few tenths of a percentage point
The Maastricht Treaty allows entry to the single currency for those states whose deficits do not exceed 3 per cent, except in exceptional and temporary conditions. In Bonn's case, the costs of German unification clearly would provide an argument for it to be considered exceptional.
However, officials stress this is not a green light for other states which may miss the target, notably Italy.
