THE head of the Bundesbank has called for strict adherence to the rules for a single EU currency, as the EMU debate appeared set to dominate the start of a summit in the Swiss Alps.
Dr Hans Tietmeyer, who will chair a discussion on EMU today with Bank of France governor Mr Jean Claude Trichet, warned that easing the criteria would allow unsuitable countries to join Economic and Monetary Union (EMU), scheduled for 1999 under the Maastricht Treaty.
"The treaty contains the convergence criteria, and these must be interpreted strictly," he said in an interview published on the eve of the World Economic Forum (WEF) meeting.
"It cannot be in the interests of the economy if a generous interpretation allows the admission of major trading partners who subsequently prove unable to maintain the pace," he said.
The debate, which has gripped European economic leaders for several weeks amid clear signs of weakness in key economies including France and Germany, will be crystallised in a session today entitled "Prospects for EMU".
The two bank chiefs will be joined by European Monetary Affairs Commissioner Mr Yves Thibault de Silguy and US Treasury Deputy Secretary Mr Larry Summers for a separate session.
The EMU issue is, however, only one of the major issues on the agenda over the next six days of high level brainstorming.
Over the next six days, key issues will include Russia, the Middle East and the Balkans, while China, Japan, Northern Ireland and Latin America will also head topical debate.
