EU agriculture ministers are next week likely to accept a European Commission proposal to allow sales of British beef by products, according to the vice president of the European Commission, Sir Leon Brittan.

Speaking in Dublin yesterday, Sir Leon said he expects agriculture ministers to reach an agreement on sales of gelatine, tallow and semen at their next meeting on June 3rd. A majority of countries supported this proposal last week, with others now expected to agree to allow sales of beef by products, he said. "I think it will go through," Sir Leon said.

And while this measure is unlikely to be sufficient for the British government, he said it would be a "step forward" for the beef industry. It also shows that the EU will accept scientific advice and follow it, he added.

The EU will then have to come to an agreement with Britain and other member states on a "totality of measures" to restore public confidence in beef, the vice president said.

"It is not just a British problem. Beef sales in Germany and France have also suffered."

Rejecting suggestions that the EU ban on British beef has dealt a blow to free trade within the European market, Sir Leon stressed that the ban related to a "specific problem". When resolved through adequate measures, he said. The hoped Europe could once again build the single market.

"We still need to take some steps to complete the single market. We have to maintain progress on European Monetary Union and make institutional changes necessary to reinforce Europe's capacity to pursue security and foreign policies," he added.

Sir Leon said the continuance of monopolistic structures throughout Europe, particularly in the energy and communications sectors, was impeding the creation of an internal market.

Ireland's primary objective must be to cut the high rate of unemployment, he said. "It must also be competitive," he added.

Sir Leon said the Irish Government will have to make a "balanced judgement" on whether the merits of joining a single currency are sufficient to offset its continued strong links with sterling.

The vice president added that he thought it unlikely that Ireland would opt out of a single currency if Britain stayed out of EMU. He hoped that ultimately both Ireland and Britain would join EMU at the same time.

Speaking earlier at a business conference on the global market, Sir Leon warned that Europe must take the lead in establishing the framework to create opportunities within world markets.

He hoped that during the Irish presidency of the European Union, a successful World Trade Organisation meeting in Singapore would take the international trade agenda forward.