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To: Alex who wrote (11186)	5/3/1998 8:22:00 PM
From: Alex	Read Replies (2) \| Respond to of 116815

A good resd from Kitco................... kitcomm.com

To: Alex who wrote (11186)	5/3/1998 9:04:00 PM
From: goldsnow	Read Replies (2) \| Respond to of 116815

More on British reaction.. Euro launch descends into farce By George Jones, Political Editor, and Toby Helm, EU Correspondent, in Brussels THE credibility of the European single currency was undermined last night by a welter of recriminations over Tony Blair's handling of the chaotic Brussels summit which ended in a fudged deal over who should head the new central bank. Money markets across Europe are braced for a volatile session today amid fears that the euro's standing has been compromised by political interference. Downing Street dismissed accusations from other European leaders that the Prime Minister - who chaired the summit as the current EU president - had not done his homework for the crucial meeting to launch the euro. But the sour mood around Europe over the traumatic birth of the new currency was in marked contrast to the recent acclaim Mr Blair has received for his success in brokering the Good Friday agreement in Northern Ireland and helping to set up today's Middle East peace summit in London. London's stock market will be closed for the May Bank Holiday, but thousands of currency dealers have been drafted into the City to trade on international markets in the wake of the decision to allow 11 EU currencies - but not sterling - to join the euro on Jan 1. Dealers, business leaders and politicians across Europe are worried that the unseemly wrangling in Brussels, which lasted until the early hours yesterday, will have damaged confidence in the independent management of economic and monetary union. After 13 hours of argument, a weary Mr Blair announced a compromise between the rival French and Dutch candidates for the post of president of the Frankfurt-based European Central Bank, which will set interest rates across "Euroland" - the 11 countries participating in the single currency. Wim Duisenberg, 62, the Dutch candidate, was appointed to head the bank for the first eight-year term. But there are fears that he will be seen as a "lame duck" president because of a promise that he will step down half-way through his term. President Chirac of France pressed for a written assurance that Mr Duisenberg would quit after four years to be replaced by Jean-Claude Trichet, 55, head of the French central bank. This was resisted by Chancellor Kohl of Germany on the grounds that it would contravene the Maastricht Treaty, which stipulates that the bank president must be appointed for an eight-year term. Eventually, Mr Blair persuaded Mr Duisenberg to appear before all 15 EU leaders and their finance ministers to assure them that he intended to stand down of his own accord in the middle of 2002 - after euro notes and coins are introduced - to make way for the Frenchman. But Mr Blair faced seething resentment among other EU leaders for allowing what had been intended as a high-profile launch of the new currency to be overshadowed by horse trading. Jose-Maria Gil Robles, president of the European Parliament, who stormed out of the summit in protest on Saturday, likened the Bank to a malformed baby and said he had "no doubt" that the agreement breached the spirit of the Maastricht Treaty. Romano Prodi, the Italian Prime Minister, said Mr Blair had been "ill-prepared" while Jean-Claude Juncker, the Luxembourg premier, said he had not sufficiently briefed some fellow leaders on the proposed deal. Downing Street officials dismissed the criticism, claiming that Mr Blair had spent hours with the summit's leading players averting a full-scale clash, which could have resulted in both Mr Duisenberg and M Trichet being vetoed, wrecking the currency's launch. Mr Blair's spokesman admitted that it had been "very difficult" but denied that there had been a "fix", saying he had achieved his objective. The blame lay with other delegations who had not made up their minds before arriving in Brussels. But Euro-MPs were warning within minutes of the deal being done that it could be illegal, and the European Parliament might seek to oppose the appointments to the bank's board next week. The first real test comes on Thursday when Mr Duisenberg is questioned by Euro-MPs. The Parliament has consistently said it wants a president for eight years. Although it cannot block the deal, a vote against would embarrass EU leaders and provoke a further crisis of confidence in the euro. The deal could also face a constitutional challenge in Germany, where there is concern that it is against the spirit of Maastricht. William Hague said the "near farcical wrangling" did not augur well for the future of the single currency. "There has been a fistful of fudges. Economic fundamentals have been blithely ignored." Kenneth Clarke, the former Chancellor, hailed the agreement as "the most important political movement in Western Europe since the end of the Cold War". But he accused the French of behaving badly and said Mr Blair had given in to them. Gordon Brown, the Chancellor, defended Mr Blair's handling. "I'm satisfied that we got, eventually, the decisions that were right both for the project and for Britain in Europe as well," he told Radio 4's The World this Weekend.