Europe Closer To Common Currency

European finance ministers agreed Saturday on details of their plan for a common currency for the continent, underscoring their determination to push the project through on time.

The European Union officials and central bank governors said their accord on largely technical issues here gave fresh impetus to the planned switch to a single currency - the euro.

“We are adding to the credibility of the process,” said French Finance Minister Jean Arthuis. “Every country is showing a lot of determination. There is a general will to respect the timetable.”

The finance officials from the 15 EU nations overcame disagreements on a complex formula of fines for nations that undermine the euro with slack finances. They decided fines could run up to 0.5 percent of national output every year.

They also concluded that money levied in fines, which could run to billions of dollars, should be used to reward those nations that keep a tight financial ship.

“The proceeds should only benefit the so-called virtuous members,” said Dutch Finance minister Gerrit Zalm after chairing the two-day meeting in this storm-battered North Sea resort.

Analysts reflected the EU’s hope that the accord here will be reflected in increased confidence in the single currency project when money markets open Monday.

The ministers focused on the first weekend in May 1998 as the date for an EU summit in Brussels, Belgium, that will select which nations will be the first to adopt the euro.