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'Two-tiers' loom over Europe

Sarah Lambert
Sunday 27 September 1992 23:02 BST
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BONN - Amid unprecedented mistrust, European finance ministers meet in Brussels today to try to scotch a growing perception that the Maastricht treaty is dead and a 'two-speed' Europe its inevitable successor, writes Sarah Lambert.

A report in the German news magazine Der Spiegel today undermines their efforts. Citing sources close to the German Chancellor, it details how Helmut Kohl and President Francois Mitterrand allegedly agreed when they met in Paris last week not only to pursue plans for a single currency, but to work on the creation of a joint independent central bank. The article was yesterday dismissed as 'completely fictitious' by a German-government spokesman who denied the topic had even been discussed.

In Paris, the French Minister for European Affairs, Elisabeth Guigou, said in a newspaper interview that a Europe of 'variable geometry' was possible and might even be desirable if it was the only way to sustain the momentum for closer union.

Other French sources reported that Mr Kohl and Mr Mitterrand had also discussed the possibility of enlarging the scope of the Franco-German brigade to include other EC countries such as Belgium and Spain. They have already explored such a possibility, but reopening the discussion now underscores the perception that, should Britain or Denmark attempt to impede the Maastricht process, France and Germany are determined to plough ahead, taking their supporters - the Benelux countries - with them. The result would indeed be a two-tier Europe.

The EC's financial crisis does not feature formally on today's Brussels agenda but will overshadow discussion. It is suggested the ministers might try to tighten exchange-rate mechanism rules so that the franc is allowed to fluctuate only 1 per cent either side of its permitted central rate against the German mark, instead of the current 2.5 per cent. Such a decision would imply a big step towards integration of the French and German currencies.

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