France isolated in battle over ‘Euro’

Date: 23/11/1995

By Tim Jones and Thomas Klau

THE French government is continuing to hold out in a battle of wills with the rest of the European Union.

This time, it is not nuclear testing or the conclusion of a trade agreement with the United States. It is the fact that France is the last redoubt against calling the single currency the 'Euro'.

In the margins of next week's meeting of EU finance ministers, Germany's Theo Waigel is likely to seek to win Paris over to his suggested replacement for the name 'Ecu' in time for a final agreement at the 15-16 December Madrid summit.

Twelve countries have already given tacit backing to the idea of the 'Euro' while the UK and Denmark, armed with their ability to opt out of the final stage of monetary union, are refusing to express an opinion.

With the blueprint for the transition all but drawn up over the past two weeks, the name is the last remaining piece of business and France remains wedded to the 'Ecu'.

When the decision is made in Madrid, the heads of state and government can opt for any name which meets the guidelines drawn up for them by the Union's advisory monetary committee.

The committee has declared that the name should be pronounceable in all EU languages, spelt in the same way throughout, and have some link with Europe's heritage.

This effectively rules out Waigel's original idea that 'Euro' would be a prefix, allowing citizens in each member state to call it a 'Euromark' or a 'Eurofranc' and so on. “Anything that refers to a specific national aspect cannot be accepted,” said a senior monetary official.

This means that the name 'Euro' is now the only game in town. “We're not even thinking about any other name,” said an official at the German finance ministry.

However, those who remember the June 1994 Corfu summit will know that a minority of one can be highly effective. Just as John Major blocked the nomination of Belgian Prime Minister Jean-Luc Dehaene as European Commission president, so France could block the name 'Euro' for the new currency.

“This is something that will be thrashed out by Chancellor Kohl and President Chirac personally in Madrid,” said a German official.

This means the decision is still open, according to monetary officials. “This is a matter that will be dealt with in Paris and Bonn, and we wouldn't be at all surprised if they came to an agreement on another name.”

The German government's opposition to retaining the 'Ecu' is not shared by ordinary members of the public. A new poll published yesterday (22 November) found that 35&percent; of Germans prefer the 'Ecu' to other suggested alternatives, 26&percent; preferred the 'Euromark' and a lowly 12&percent; opted for the 'Euro'. Further behind were the 'Euro-Taler at 8&percent; and the 'Euro-dollar' with 5&percent;.