European monetary union: delay possible
Article Abstract:
European monetary union could suffer a delay according to HSBC James Capel. The size of French and German budget deficits could create problems and this may mean that Italy and Spain cannot easily be excluded. The Italian lira and French franc may be under pressure as they are sold due to pessimism over monetary union. There is a strong commitment to union, and it is still unlikely to be cancelled despite any delays, but a higher degree of co-operation is needed if it is to succeed.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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European monetary union: delay possible
Article Abstract:
Julian Callow from Kleinwort Benson sees a risk that European monetary union may have to be postponed. France will have problems reducing its budget deficit to the required level due to sluggish economic growth and opposition to reductions in public spending. Germany's upper house, the Bundestag, argues that the criteria for monetary union should be met. Germany could be outvoted, but it is unlikely that monetary union will go ahead if Germany is unhappy about who is included.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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European monetary union: more progress
Article Abstract:
Paribas Capital Markets sees a continued effort to achieve European monetary union (EMU) in 1996. A decision on which countries will take part will be made in 1998. EMU is unlikely to proceed unless France takes part, and there is uncertainty as to whether the French budget deficit can be reduced to the target level. EMU may be postponed but this would not have serious consequences since it would not necessarily mean that monetary and fiscal policies were loosened.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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