Chirac: Agreement Demanded

Chirac Demands Agreement Before Summit

French Finance Minister Dominique Strauss-Kahn called in Luxembourg on Monday for a delay for reflection on the pact, saying France wanted greater priority for jobs and growth included in it. The French head of state's remarks follow fresh doubt - on both sides of the Channel - over the planned single European currency. Both governments are highlighting the importance of job creation and economic growth at the EU Finance Minister's meeting in Luxembourg.

The Chancellor of the Exchequer, Gordon Brown, and his French counterpart, Dominique Strauss-Kahn, insisted that the drive towards monetary union should not obstruct the twin goals of creating healthy economies and cutting unemployment - currently standing at 18 million - on the continent.

And both centre-left governments vocally supported each other at the meeting. Mr Brown described France's reluctance to accept the terms of the single currency "stability pact" as "wise and measured". The decision has put France at odds with Germany; the German Finance Minister, Theo Waigel, was adamant that there could be no re-negotiation of the terms.

At a news conference, Mr Brown declared: "What is common not just to the French and the British but to all countries in Europe now is a recognition that with unemployment at 18 million in Europe, we must now focus attention on the jobs and growth that people in Europe want." Mr Brown also repeated that it was unlikely that Britain would be in the first wave of countries joining the currency.

In turn, Mr Strauss-Kahn described Mr Brown's five point plan to cut unemployment in Europe as "very interesting".

Strauss-Kahn wants new talks on pact

France's determination to reopen talks on the "stability pact" - which would result in penalties against member states for not maintaining tight budgetary discipline - has rung alarm bells among several of the other ministers in Luxembourg. Germany is warning that any move to amend the pact could undermine the entire project of monetary union.

However, the EU Commission President, Jacques Santer, is planning to visit Paris on Thursday to discuss new wording of the pact with the new French Prime Minister, Lionel Jospin.

Tony Blair is also expected to meet with Mr Jospin and the French President, Jacques Chirac, in Paris later this week. Mr Blair is intending to consult all the major EU players before the Amsterdam Summit next week. The Prime Minister is keen to emphasise that there will be no compromise on his demand for British border controls to be protected by legal authority within the core EU treaty.