Europe would face political and economic chaos if it postponed the launch of the single currency, the Economic Affairs Commissioner, Mr Yves Thibault de Silguy, warned yesterday.

Responding to questions from journalists about the statement on Monday by 150 German economists urging a delay, Mr de Silguy said they had not advanced any arguments that had not already been refuted.

Inflation was now at historically low levels in the EU and public deficits in 1997 would average under 3 per cent, he insisted.

That did not mean, however, that the criteria would not be implemented rigorously providing a sound basis for the launch, he said.