EU finance ministers should meet next month and discuss the current uncertainties about the Maastricht timetable for economic and monetary union, according to the Minister for Finance, Mr Quinn.
The Italian Presidency of the EU has broken with precedent and has not scheduled a finance ministers' meeting for next month, but Mr Quinn believes the ministers should consider the position on EMU and issue a statement to calm the situation.
Mr Quinn told The Irish Times last night that he was disappointed that no meeting of the European Council of Finance Ministers was being held next month. Normally meetings are held monthly and Mr Quinn said he was "concerned there was none scheduled for February in the light of recent comments and concerns.
Ministers should be furnished with reports on the position from the EU Commission and the European Monetary Institute, he said. It appears the current political uncertainty in Italy is behind the decision not to convene the normal meeting of ministers, although this position may still change.
Over the past week there has been intense speculation about the Maastricht timetable for EMU. Figures for Germany showed that it did not meet the budget deficit requirement last year and official projections are that it will not do so this year either. The budget deficit in France is also well above the 3 per cent limit and figures to be published later this week are expected to show a further rise in unemployment.
Mr Quinn believes it is unhelpful at the moment to speculate about the Maastricht timetable. However, he believes the uncertainty would be made worse if the decision not to hold a meeting of finance ministers was adhered to by the Italian Presidency.
The Government remains committed to meeting the Maastricht rules, a point reinforced by Mr Quinn in last week's Budget speech. At the moment, Irish borrowing is below the 3 per cent limit set in the treaty and is one of the lowest in Europe.
While Mr Quinn will not comment in detail on the current arguments about the
Maastricht timetable, the Government view appears to be that the single currency will go ahead on schedule, provided France can meet the requirements. The German Chancellor, Dr Kohl, strongly reaffirmed German's commitment over the weekend.
However, French government borrowing remains well outside the Maastricht guideline levels and it is not clear whether the French government will be able to get it down by next year. According to the Maastricht timetable, economic performance in 1997 will be the key factor in determining which states qualify for the single currency. The decision is due to be made in early 1998.
The Government has commissioned the Economic and Social Research Institute to conduct a study on the implications of EMU for Ireland. Among the issues it will consider are the relationship between the currencies which join the single currency and those who stay outside.
Meanwhile, the European Commission continues to insist that the Maastricht timetable remains in place. Most European Union nations will meet the criteria for monetary union in 1997 and altering the standards would be catastrophic, EU Monetary Affairs Commissioner, Mr Yves Thibault de Silguy, has said. "Barring an economic or political cataclysm, France, Germany and a majority of EU states will be ready at the end of 1997 for the transition to the euro."
Mr de Silguy was speaking after a week in which several French business and political leaders as well as two cabinet ministers raised doubts about the timing or standards of monetary union.
