Steve Wright <[EMAIL PROTECTED]> writes:
Legal Challenge Threat To Euro
Euro-MPs are threatening a legal challenge over the presidency of the
European Central Bank - undermining market confidence in the euro on the
first day of financial trading after the weekend launch of the single
currency.
Prime Minister Tony Blair brokered a deal at the Brussels summit over the
weekend to split the first eight-year term between two people.
But Pauline Green, socialist leader in the European Parliament, is to ask
the Parliament's legal services to rule on whether or not the compromise
deal is in line with the Maastricht Treaty.
The row over who should be the bank's first governor overshadowed the
summit, which was supposed to see the agreement by 11 member states to
launch the single currency next year.
While most EU countries backed Dutchman Wim Duisenberg, currently head of
the European Monetary Institute, forerunner of the ECB, for the post, the
French held out for their man Jean-Claude Trichet, governor of the Bank of
France.
A deal over who was to be the powerful Mr Euro was thrashed out only after
11 hours of deal-brokering in Brussels. Under the compromise, announced by
Mr Blair, Mr Duisenberg was appointed for eight years, as the Treaty
requires.
However the Dutchman had let it be known that he will stand aside in July
2002 after the single currency notes and coins are launched and national
euro-zone currencies withdrawn. At that point, said Mr Blair, it had been
agreed that a Frenchman would take over.
Ms Green dismissed the deal as an "unacceptable shenanigans", adding:
"Ministers can fudge on the legality of the single market, but they cannot
fudge on the reality of the money markets.
"If what they have done ends up weakening the euro and damaging the
currency, then that is their responsibility."
Tory Euro-MPs are also threatening legal action.
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Lifes a beach and I'm on it, Jah Wobble.
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