France's Minister for Finance said yesterday he had confidence in the strength of the euro but he would not be drawn on whether Europe's central bankers would intervene to support the currency.

Mr Laurent Fabius said that what Europe needed was a stable euro which would be neither over nor undervalued. It was not a weak currency, he added.

Speaking after a meeting in Dublin with the Minister for Finance, Mr McCreevy, he said the European economy is growing stronger and stronger.

He argued that the need for structural reform of European economies was not the only reason for the currency's current position and that enlargement was a major issue.

Mr Fabius said: "None of us wants a weak euro, or an overvalued euro, we want a stable euro with reasonable rates of interest which allows our businesses and economy to develop and grow."

Instruments for intervention were available as an option but he would not be drawn on whether this would happen. France takes over the presidency of the European Union in July and Mr Fabius said that preparations for enlargement would be one of the main focuses of the presidency.

A lack of a common voice within the European Central Bank has plagued the new currency since its birth and Mr Fabius said unimpressive publicity and a lack of co-ordination had not helped the euro.

However, he said the meeting of the Euro 11 ministers and the issuing of a communique agreed by ECB president Mr Wim Duisenberg, last Monday, would give a new impetus and improve the situation.

He said such meetings enable a common approach and that was the way forward for euro-zone states. High inflation in the Republic's economy will have to be mastered, according to Mr Fabius, but he said that the State had a good record on employment.

Mr Fabius said that Europe had to tackle the labour shortages which are affecting some sectors and other euro-zone states could learn from the Republic's success.