To:Bobby Yellin who wrote (244) From: John Barendrecht Sunday, Jul 6, 1997 11:25 PM Respond to of 80032
French-German tiff could delay Euro -Soros MUNICH, Germany, July 6 (Reuter) - Renewed friction between France and Germany could lead to a delayed start for European economic and monetary union (EMU), master currency speculator George Soros said in a magazine interview.
``Conflict between France and Germany is preordained, and could lead to a delayed start for the euro,'' Soros told Focus.
Soros, a Hungarian-born philanthropist who heads the multibillion dollar Quantum Group, said he agreed with the French proposal to put greater emphasis on fighting unemployment.
``The most urgent priority should be to reduce unemployment, and this demands more flexibility in concrete policies,'' he said. ``In Germany, drastic tax cuts will be needed to fight unemployment.''
Germany has insisted the future European central bank should focus only on inflation and must remain free from political influence.
Soros said his view on the start of the euro had changed since early this year, when he believed EMU would start on time in January 1999.
``The situation has changed dramatically, and I'm no longer so clear about how it will start,'' he said, adding that Italy's chances of joining EMU at the start have improved.
The start of the euro will certainly strengthen the dollar, which will be good for the European economy in the long run by boosting exports and helping its trade balance, he said.
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