THE German government moved yesterday to crush speculation about the future of the European Monetary Union by reaffirming its commitment to introducing the single currency in 1999 as agreed in the Maastricht Treaty.
The Foreign Minister, Mr Klaus Kinkel, said in Bonn that his government remained firm in its resolve to maintain the EMU timetable regardless of the political or economic difficulties involved.
"The decision on which countries fulfil the criteria for entry will be made as early as possible in 1998. The decision will be made on the basis of stability and convergence data from 1997. There will be no weakening," he said.
Mr Kinkel's statement is a rebuke to British ministers who have said in recent weeks that a postponement of the EMU is imminent on account of growing economic difficulties in France and Germany.
Both the British Foreign Secretary, Mr Malcolm Rifkind, and his predecessor, Mr Douglas Hurd, questioned the credibility of the timetable last week.
Mr Karl Lamers, foreign policy spokesman for the governing Christian Democrats, has accused Britain of mounting "an irresponsible propaganda campaign" aimed at undermining the EMU.
The Chancellor, Dr Helmut Kohl, issued a veiled warning to Britain last week in a speech at the Belgian University of Louvain when he said that "the slowest ship" could not be allowed to determine the speed of the entire European convoy. He further angered British Conservative politicians by outlining his vision for Europe
"The policy of European integration is in reality a question of war and peace in the 21st century. My late friend, Francois Mitterrand, also saw it thus. On January 17th, 1995, he told the European Parliament in Strasbourg: `Nationalism - that is war,'" he said.
"I know that some do not wish to hear this. My warnings may contain an unpleasant truth. But it is no use burying one's head in the sand."
Dr Kohl warned that any loss; of momentum now would not only bring the process of European integration to a standstill but would put it into reverse.
Dr Kohl admitted that Germany's history and geographical", position gave it more reasons than its neighbours to want European integration. But he ruled out the idea of a single European super state, now or in the future.
German officials insist that Dr Kohl's speech was no more than a reiteration of his lifelong commitment to the European idea, but it has sharply raised tension between Bonn and London in advance of the Inter Governmental Conference.
Dr Kohl identified Germany's priorities for the IGC as the creation of a common foreign and, defence policy, an improvement of co operation in the fight against crime, greater administrative efficiency in the EU and a strengthening of the role of the European Parliament.
Mr Kinkel's statement yesterday was prompted by remarks by Dr Wolfgang Schauble, the Christian Democrats' parliamentary leader, hinting that the single currency could be postponed if an insufficient number of member states qualified for entry by 1998.
Mr Kinkel insisted that the EMU was essential to maintain the competitiveness of the European economy within the global marketplace.
