GERMANY: HELMUT KOHL MEETS ITALIAN PRIME MINISTER LAMBERTO DINI

Описание: (11 Dec 1995) German/Nat

German Chancellor Helmut Kohl and Italian Prime Minister Lamberto Dini have met for talks in Bonn on the preparations for the European Union summit being held in Madrid later this week.

The two leaders also discussed prospects for the six-month Italian presidency of the E-U which begins January 1.

But many in German finance believe that Italy won't be ready for the single currency proposed for 1999.

The German banking community is renowned for its caution. They are the main exponent for a single European currency, but they acknowledge that other European nations won't be ready for it by 1999.

German Chancellor Helmut Kohl met his Italian counterpart Lamberto Dini in Bonn, and among the topics discussed was Italy's readiness to join the single Europeans currency.

But in Frankfurt, the financial heart of Germany, the feeling on the streets is that the other European nations' finances are not particularly strong.

SOUNDBITE: German

The Deutschmark is the hard currency, but there are some countries among those which are not as strong as the Deutschmark.
SUPER CAPTION: Peter Breidenbach, Pastry cook.

Some even doubt that Italy wants to join the single currency.

SOUNDBITE: German

I think the problem lies with the countries which have a very weak currency like Italy, but I believe they don't want to join anyway. So I think if monetary union happens with everybody, there are just two or three that will not work out.

SUPER CAPTION: Mechtild Schaefer

Some in Germany are worried that a single currency will devalue the Mark. German banks however are keen to allay their fears.

SOUNDBITE: German

We've also heard that people ask in our branches if there is a way how to avoid the European monetary union by transferring capital for instance to Swiss Franc. We advise explicitly not to do so.
SUPER CAPTION: Ulrich Schroeder, Deputy Director of Deutsche Bank Research

But German financiers are doubtful that Italy will be able to fulfill the economic requirements for a single currency.

SOUNDBITE: German

"So we see Italy not as one of the first members in the European Monetary Union and we believe that Italy will not fulfill the conditions set in '97 for the '99 union."
SUPER CAPTION: Ulrich Schroeder, Deputy director of Deutsche Bank Research.

For some in Germany other foreign currencies are viewed as small change compared to the Mark.

But the German government is at pains to suggest that economic monetary union will strengthen, not weaken, its own currency.

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