EMU: DIDIER REYNDERS HOPES TO IMPROVE EUROGROUP'S STATUS.

Mr Reynders claimed the Eurogroup had shown its ability to adopt joint strategies when the international situation so required. The system for keeping track of how the Euro-zone countries were applying budget policy and the preparations for the advent of Euro notes and coins have turned out to be quite successful. However, faced with the centralisation of the ECB, which is in charge of managing monetary policy for the entire zone, the Belgian Minister would like to push even further ahead. His idea is to consider the scope for a "broader-based and more formal" system. As an informal authority, the Eurogroup is unable to take decisions. A bigger role for the European Commission is also planned.Mr Reynders acknowledged the strains with the ECB but tried to put them in context. These are only to be expected in the case of "fledgling institutions," he says. On the monetary front, he stresses that this is an ECB responsibly but for several months now monetary policy has enjoyed more freedom for action than budgetary policy. Hence if wage restraint persists and inflation continues to fall, rates may be relaxed further.The Convention on the Future of Europe, which is due to start work in March 2002, should, he says, also consider extending the number of areas where qualified majority making is required. He notes that...