Single currency: the moment of truth

Date: 05/10/1995

The storm clouds which gathered over economic and monetary union in the wake of Theo Waigel's remarks about the likely membership of the single currency club may have dispersed in the wake of last weekend's gathering of EU finance ministers in Valencia. But they could soon reappear if the one question which the public wants answered remains shrouded in confusion.

Economics Commissioner Yves-Thibault de Silguy has warned of the pressing need to begin preparing public opinion for the changeover. But the endless wrangling over the issue which matters most to the public - the name of the new currency - is in danger of damaging the entire venture in the eyes of ordinary citizens.

Germany is now campaigning hard to christen it the “Euro” and claims it won backing for the idea in Valencia. But other finance ministers said the issue had hardly been discussed. All that was agreed was that the new name should be short, easy to pronounce and the same in all EU countries. Why all the secrecy? Surely the public has a right to be told whether in fact there was a serious debate on the issue and if, as some suggest, a firm favourite has emerged.

The continuing uncertainty is a gift from the gods for opponents of a single currency who will argue that if ministers are still at the stage of setting the ground rules for reaching a decision almost seven years after serious economic and monetary union discussions were launched, it is folly to suggest EU governments will ever be ready to take the final step.

Those working tirelessly behind the scenes to prepare the ground for a single currency may be weary of being accused of failing to do their homework properly. But they may find more sympathy for their venture if they lift the veil of secrecy which has covered so much of their deliberations. The reaction to the Maastricht Treaty demonstrated clearly to governments the dangers of moving forward without allowing sufficient time to bring the public with them. Publicly they all accept this mistake should not be repeated and yet they are in danger of doing just that.

If the single currency is to succeed it needs a name. Without one, the campaign the European Commission insists is needed to reverse what de Silguy described earlier this year as a “declining belief” in economic and monetary union cannot take off. Unless that campaign is launched soon, the odds against reversing the tide will become even greater.

If agreement on the name is close, the public should be told and its reaction sought before a final decision is taken at the Madrid summit in December later this year.