German and French leaders at odds over EMU

Last Minute Attempts to Resolve Euro Dispute

The efforts come just days before European Union leaders meet in Amsterdam to approve the issue.

The two countries failed to resolve their differences at a summit on Friday between Chancellor Kohl of Germany and President Chirac of France.

Germany insists that the stability pact, which would punish countries that ran excessive deficits after joining the single currency, should not be altered.

The German Finance Minister Theo Waigel reiterated his government's position at a meeting of the Christian Social Union, a sister party in the governing coalition of Chancellor Kohl.

Mr Waigel said no changes would be made to the joining criteria. But he added that he hoped an agreeement could be found to accomodate the concerns of the new Socialist government in France.

The government of Prime Minister Lionel Jospin maintains the pact is too rigid, and wants the stress on deficit-cutting allied to a new commitment to job creation.

Mr Jospin was elected earlier this month on a pledge to ensure the pact is balanced with a commitment to growth, job creation and coordination of economic policies.

The French Finance Minister, Dominique Strauss-Kahn, said things were moving, but urged Germany to compromise so as not to jeopardise the summit.

A final informal meeting of EU finance ministers will also try late Sunday to reach a consensus.

The British EU Commissioner, Sir Leon Brittan, has voiced optimism that a solution could be found before the summit on Monday.

Under current criteria, countries joining the a single currency must have reduced their deficit to 3.0 percent of gross domestic product. The pact, by penalising any slippage, seeks to ensure they stick to rigid monetarism afterwards.