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ORLD
Wednesday • June 4,199]
Europe fears lag in currency reforms,
BONN, Germany (AP) — Ger
many and France have been twin
locomotives pulling Europe toward
a single currency.
A change of power in France and
German wrangling over a plan to
revalue its gold reserves are raising
fears that the European currency
concept could run out of steam.
France’s Socialists won Sunday’s
parliamentary elections on promis
es to ease austerity policies that
President Jacques Chirac’s center-
right government imposed to meet
stringent standards for joining the
European Union’s single currency.
France’s Socialist leader, Li
onel Jospin, says he supports cre
ation of the euro — but that
France will join the monetary
union, scheduled for 1999, only if
the EU meets new conditions.
They include a guarantee that
Italy and Spain also will adopt the
euro; a flexible interpretation of the
entry criteria; and a strong voice for
EU members to counterbalance the
planned European Central Bank.
France’s new demands are a cause
for concern in Germany, its strongest
ally in the single Currency drive.
“The change of government in
France creates risks for develop
ments in Europe,” said Michael Glos,
a leading member of the Christian
Social Union, the Bavarian sister par
ty of Chancellor Helmut Kohl’s Chris
tian Democratic Union.
Chief among the concerns are
the possibility that the euro’s debut
will be postponed, or that France’s
move to soften the currency crite
ria will result in a euro weaker than
the German mark.
Kohl’s government has not di
rectly warned the new French
government not to tamper with
plans for the euro.
On Monday, Kohl’s party did say
it expects the new French regime to
push ahead with the euro on sched
ule — and without watering down
the entry criteria.
The Free Democrats, junior al
lies in Kohl’s three-party coali
tion, say a breakdown in French-
German cooperation could be
fatal to the euro.
“The Germans and the French
must show responsibility — es
pecially now — for Europe and
stay on a joint course,” said Hel
mut Hausmann, the Free Democ
rats’ economics specialist.
Germany has plans do some
euro tinkering of its own.
Its scheme to revalue the nation’s
gold and currency reserves and trans
fer the profits into government coffers
has been blasted by Germany’s cen
tral bank, by economists and by the
Dutch finance minister.
German gold reserves have a mar
ket value of $33.5 billion.The Finance
Ministry says the government expects
to net about $11.5 billion.
Current performance of the European Union member states
in relation to the requirements for joining the EU single
currency on Jan. 1, 1999. 1
Single currency criteria*
Austria
U Belgium
Denmark
HP- Finland
France
)Wi> Germany
|?j!|E Greece
SUL Ireland
Italy
Luxembourg
Netherlands
Portugal
Spain
Sweden
121 UK
Inflation
Interim index
of cons, prices
March 1996-97
Interest rates
Long term
interest rates
Mar. 96 - Feb. 97
Deficit/GDP
ratio
1996 (x)
Debt/GDP
ratio
1996
2.6 or less
8.2 or less
3.0 % or less
60 % or less
1-2 P
6.2
3.9
69.8
1.3
6.4
3.4
130.0
1.5
7.1
1.7
70.2
0.8
6.9
2.5
58.8
1.1
6.2
4.1
56.2
1.3
6.2
3.8
60.7
5.9
14.8
7.4
111.8
na
7.1
0.9
72.8
2.2
8.9
6.8
123.6
1.3
6.2
-1.4*
6.4
1.3
6.1
2.4
78.5
2.3
8.1
4.1
65.8
2.2 p
8.3
4.4
70.3
1.0
7.7
3.5
77.7
1.8
7.9
4.8
56.3
(p) provisional
(') surplus
Bmsmmmmmm
‘Single currency criteria
Inflation: Interest rates:
Variable. Not to exceed 1.5
percentage points of the
average of the best three
performing countries
Variable. Not to exceed 2
percentage points of the
average of the best three
performing countries
Deficit/GDP ratio:
Figure fixed.
3 percent or lower
Debt/GDP ratio:
Figure fixed.
60 percent or lower
d
m
There are loopholes lor nations whose debt and deficits are sufficiently declining, even if above the required level.
United States continues Sierra Leone evacuation'
GUINEA
50 miles ;
50 km
SIERRA
LEONE
NIGERIA
LIBERIA
DfeMonrovia
.A
Hundreds of civilians moved from the
heavily targeted Mammy Voko Hotel to
the Cape Sierra Hotel for evacuation.
Atlantic
Ocean
Aberdeen Greater ■
Freetown
Coup
defense
headquarter
AP
Marines escort foreigners to
safety amidst rebel threats
FREETOWN, Sierra Leone (AP) — Guarded by U.S.
Marines with armored vehicles and 25-mm cannons, 1,200
foreigners boarded helicopters Tuesday and fled this West
African nation for the safety of an American warship.
It was the third Marine-led evacuation since mutinous
soldiers overthrew Sierra Leone’s elected government May
25 in a bloody coup. Nigeria sent in new troops Tuesday and
appeared poised for another assault. Scores of people died
in fighting this week after Nigerian soldiers bombarded po
sitions of the mutineers.
Three helicopters carrying Nigerian troops left neighbor
ing Liberia to reinforce more than l ,500 of their countrymen
whom the rebel army forced to retreat on Monday.
The Nigerian Defense Ministry said its move was
backed by neighboring Guinea. An Organization of
African Unity meeting made no decision on whether to
intervene in Sierra Leone, despite a plea from the gov
ernment of ousted President Ahmed Tejan Kabbah.
“We have no alternative but to remove those dogs from
our capital,” James Jonah, Sierra Leone’s ambassador to the
United Nations, told the gathering in Zimbabwe.
Nigerian state radio said Nigeria hoped no “full mill-
Canada fears complications of
tary operation” would be needed, but said its troops werd
“policing the coup leaders so as to flush them out.
“When you are dealing with a madman in a chinai
shop you do not ride roughshod over him so as not to ^
wreck everything,” according to the radio report mon
itored by the BBC.
In Freetown, the streets were empty of residents, andl^l
sporadic fighting continued despite a cease-fire the Red
Cross arranged to allow Tuesday’s evacuation from an * a|
area near the Cape Sierra Hotel.
Ann Wright, the U.S. charge d’affaires, watched asf :o|
evacuees — including 30 Americans — boarded heli-||,
copters for the USS Kearsarge off shore. Since Friday, U.S.T
helicopters have ferried about 2,400 foreigners from the
city to the warship. At least 10 people were carried to the j
helicopters on stretchers.
Wright said the area “has become a very dangerous pi
place with a bunch of 13-year-olds around and outoflbl
control. ... These are a bunch of thugs and lunatics hav-fill
ing a free reign of terror with the army joining in.” I
After Tuesday’s evacuation, and the 356 Marines re-|io I
turned to the Kearsarge, coup leader Maj. Johnny Paul Jlr
Koroma traveled through the capital in a heavily*:afl
armed motorcade. Pi
Paulo Leizzair, owner of the Cape Siena Hotel, said Koro-lt I
ma stopped there and told him “the trouble is over.” I
divided Parliament 1
OTTAWA (AP) — Prime Minister
Jean Chretien insisted Tuesday he
could govern Canada effectively de
spite the prospect of rancorous five
way debates in a Parliament frac
tured along regional lines.
Quebec separatists disagreed,
saying their push for independence
would take on new urgency because
the western-based Reform Party
was now the main opposition.
Reform’s new role “will radical
ize politics,” said Quebec’s sepa
ratist premier, Lucien Bouchard.
“This party was elected on the
back of Quebec. It’s been attack
ing all Quebeckers, whether fed
eralist or sovereigntist.”
Chretien, who barely survived a
close race against a separatist in his
own Quebec district, tried to find a
bright side in the outcome of Mon
day’s election. His Liberal Party lost
19 seats, emerging with a narrow
majority of 155 seats in the 301-
member House of Commons.
“When you have a majority and
you have four parties located in dif
ferent parts of Canada with some
who are on the right, some extreme
right, some on the left, it’s not a dif
ficult political problem to run a gov
ernment,” he said Tuesday in his
hometown of Shawinigan, Quebec.
Canadian election
Results of Monday's Canadian election
for the 301-seat House of Commons
with near-complete returns:
Parliamentary
seats won:
Progressive -'Sfin/-
Conservatives nSJi C*
20 seats
New Democrats
21 seats
j Liberals
155 seats
Others
1 seat
ELECTIONS
CANADA
mm
Bloc Quebecois
44 seats
Reform JfJJ
60 seats MfmL
^ I S'
Turnout: 66.7percent
AP
AGGIE WRANGLERS
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CLASSES START JUNE 15 AND RUN 4 WEEKS
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access to The WIRE
A 24-hour, multimedia news service
for the Internet from The Associated Press
The WIRE provides continuously updated news coverage
from one of the world’s oldest, largest news services via
The Battalion’s web page.
•A comprehensive, up-to-the-minute news report combining the
latest AP stories with photos, graphics, sound and video.
• Headlines and bulletins delivered as soon as news breaks.
• Scrolling tickers for market prices and sports scores
@ http://bat-web.tamu.edu
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