THE Progressive Democrats have said Ireland must "keep its options open" on joining monetary union, leading to a strong attack from Fine Gael, which has claimed that the party is at odds with Fianna Fail.
The Progressive Democrat manifesto says "it is vital that we have more extensive consultation before a final decision on EMU is made", particularly with small and medium sized businesses where jobs might be at risk.
Questioned at the launch of the manifesto, the PD leader, Ms Mary Harney, indicated that the PDs were likely to support Irish membership, even if Britain remained outside.
"We plan on entering, but have to keep our options open," she said, indicating the only reason to remain outside would be if the entry conditions were not favourable.
It is understood the PDs believe if Britain joined there would be no question but that Ireland should also join. But with Britain likely to remain outside, at least initially, the party believes it would be unwise to make a final commitment before negotiating the rate at which the pound would join the single currency, and seeing the arrangements to be put in place in relation to controlling movements of sterling against the new single currency.
Fianna Fail, in its election manifesto, says that even if Britain stays out, it would be in Ireland's long term economic interest to join monetary union. And yesterday the Fine Gael Minister for European Affairs, Mr Gay Mitchell, said the "confusion between the two parties on the issue "represents further damning evidence of the political and economic instability that would result from a coalition of these two parties".
The reality is the people voted in the Maastricht Treaty to join the single currency, he said in a statement, arguing that the economy would be damaged by a "wait and see" approach.
However, last night Fianna Fail sources played down any differences, saying the policy of an FF/ PD coalition would be to enter monetary union from day one.
Meanwhile, the Progressive Democrat manifesto argues that "if we are serious about EMU then we are going to have to face up to some important decisions." A new partnership agreement would be needed to ensure the economy could cope with a sharp fall in the value of sterling. Joining would also make it essential to adhere to tight Budget discipline, the party argues.
