To: E. Charters who wrote (23270 ) 11/22/1998 10:37:00 AM From: goldsnow Respond to of 116752
EU Social Democrats Gather Sunday, 22 November 1998 B R U S S E L S , B E L G I U M (AP) FINANCE MINISTERS from the European Union's 11 left-leaning governments gather Sunday to prepare for intensified economic policy coordination after the launch of the euro as the EU's shared currency on Jan. 1. The ministers are set to formally release a document entitled "The New European Way," which outlines how the socialists plan to use their new ascendancy in the EU to make growth and job-creation the top economic priority. Left-of-center governments now run all but four of the EU's 15 nations, including the four largest - Germany, France, Italy and Britain. "Our task is to find a way of marrying together an open, competitive and successful economy with a just and human society," says a draft of the program posted on the Internet by European socialist parties. "Central is the objective of reconstructing a full-employment society, a society in which there are job opportunities for all citizens." The drive for closer cooperation is spearheaded by Germany's new finance minister Oskar Lafontaine and his French counterpart Dominique Strauss-Kahn. Britain's Chancellor of the Exchequer Gordon Brown has lined up behind them, although Britain will be staying out of the euro project for now. The socialist ministers will meet at a Brussels hotel on the eve of the regular monthly meeting of all 15 EU nations, the first for Lafontaine who took office after his Social Democratic Party won elections in September. In their nine-page "policy agenda" the socialist ministers support public spending on infrastructure and public services as "vital for the future of the prosperity of our society" and call for "a social contract ... which gives to all citizens a stake in the development of the European economy." However the document also insists tight budgets are essential to underpin the euro's stability. It lists "a commitment to monetary stability (and) sustained fiscal discipline" as priorities. The socialists call on the new European Central Bank to take account of "growth and employment" as well as inflation when its starts setting interest rates for the euro bloc. EU ministers will be able to repeat their recent calls for lower rates Monday when they are joined by Wim Duisenberg, the central bank's president. So far, he has been unmoved, pledging to use the ECB's legal independence from governments to resist political pressure. Despite the commitment to pool economic ideas, policy differences persist among the socialists. Britain has little time for French and Italian plans to impose shorter working weeks. The French are wary of British- and Dutch-style labor market flexibility. Several countries have doubts about French plans to raise cash for huge pan-European road and rail projects, and Britain rejects talk of setting EU-wide taxation rates. Socialist unity could be put to the test Monday, when ministers debate the EU budget. Germany insists it pays too much to the Union's coffers and wants a reluctant France and Italy to shoulder more of the burden.