(16 Jun 1997) Natural Sound
European Union leaders have begun a two-day summit in the Netherlands on Monday, where they hope to salvage plans for a single currency.
Since taking office the French government has aired reservations about the stability pact, which limits a country's public spending after they adopt the single currency.
Divisions between France and Germany over how to proceed on a single currency look set to make the summit one of the E-U's most contentious in years.
Dutch Prime Minister Wim Kok arrived first for the summit in Amsterdam, ready to greet the other European Union leaders.
Kok and the Dutch government will be presiding over the summit, which aims to salvage plans to introduce a single European currency.
The most pressing item on their agenda was keeping the EURO, as the new currency will be called, on track for launch in 1999.
Britain's new government, led by Tony Blair, remains undecided on whether to join the Economic and Monetary Union of the E-U.
But Germany is determined to push through the stability pact, a set of economic criteria each country must meet before joining EMU.
Many E-U nations, including economic powerhouses France and
Germany, are struggling to qualify.
And as leaders cut spending to ensure a strong and stable EURO, they are under increasing pressure from their citizens to ease the union's
crippling 12.8 per cent joblessness.
France's new Socialist-led government suddenly has objections to the stability pact.
It questions a German-inspired accord to fine countries that meet the criteria for adopting the EURO, then backslide through excessive public spending.
France, with unemployment at a post-war record 12.8 per cent, says it won't endorse the stability pact unless it is linked to an E-U effort to create jobs.
But the Germans insist the pact is not up for discussion.
Germany's key concern is that austerity, not spending on massive job-creation programs, will make the EURO as strong a currency as the German mark is today.
But on Sunday night, E-U officials appeared confident an agreement would be reached.
Apart from the single currency, the presidents and prime ministers are trying to conclude an ambitious rewriting of the E-U's treaty.
This revision is necessary for the organization to expand from 15 to 25 or more members over the next 10 years.
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