The German Chancellor, Dr Helmut Kohl, admitted yesterday that high levels of public debt in Italy and Belgium posed a risk to EMU and that the single currency would not create jobs in the short term. But he claimed the risks were outweighed by the advantages to Europe in general - and to Germany in particular.
Dr Kohl was giving evidence to a joint sitting of the parliamentary committees on finance and European affairs before tomorrow's vote in the German parliament on the country's membership of EMU.
All parties except the tiny, ex-communist Party of Democratic Socialism are in favour of a punctual launch of the euro with 11 EU member states involved. The eastern state of Saxony is alone among Germany's 16 federal states in threatening to vote against the government motion in the upper house of parliament, the Bundesrat. Saxony's prime minister, Mr Kurt Biedenkopf, a long-standing rival of the chancellor within the governing Christian Democrats, wants assurances that action will be taken to curb public debt in Italy and Belgium.
Describing tomorrow's decision as the most important Germany has faced since reunification in 1990, Dr Kohl said European unity was the only guarantee against war in the region.
The chancellor praised the achievements of the EU in recent years and said that greater strides had been made towards unity than many had believed possible. After monetary union, political union was now the most important task facing the EU and Dr Kohl promised important decisions would be taken on the reform of the Commission, and qualified majority voting, during next year's German presidency.
He expressed confidence that Britain would join EMU in due course and that, "in ten years or so", Switzerland would also be a member. He urged Germans not to exaggerate the risks posed by high levels of debt in other countries and to consider the efforts being made by Italy, France and Belgium to meet the requirements of monetary union.
The chancellor said German parliamentarians should be more sensitive to the emotions and prejudices of neighbouring countries and realise that one look at a map was the only reminder anyone needed of Germany's dominant role in Europe.
"We don't have to tell anyone who we are," he said.
