(11 Jun 1997) English/Nat
French President Jacques Chirac on Wednesday met the government of Prime Minister Lionel Jospin for the second time since the elections.
The cabinet discussed targets for reaching the criteria for entry into the European Monetary Union by 1999.
Analysts have suggested a rift over European policy between the president and the prime minister - but after the meeting, officials said the two leaders are in broad agreement.
For the second time since the Socialist victory on 1 June, the French government and President Jacques Chirac held a Council of Ministers meeting.
High on the cabinet's agenda - the European Monetary Union and the criteria for first round entry in 1999.
Since the election - observers have suggested a rift over European policy between the new Socialist Prime Minister Lionel Jospin and conservative President Jacques Chirac.
Jospin's government asked E-U officials on Monday to delay the currency "stability pact" which would impose fines on countries that let their budget deficits rise after adopting the Euro.
A day later, however, Chirac stressed he thought the pact could still be signed at the upcoming E-U summit in Amsterdam.
But after Wednesday's meeting, a government spokeswoman said that at this stage, there was no split between the president and the government.
She also said that talks on Europe ahead of the 16-17 June summit were being conducted in a "positive atmosphere".
Also speaking after the cabinet meeting, the finance minister spoke of his hope that Chirac and the government could reach a deal before the Amsterdam talks.
SOUNDBITE:
"I don't think that a very strong currency is any way something against jobs. All of us want both job growth, on the one hand, solidarity on the other hand, and finally stability."
Q: Will there be a compromise in time for Amsterdam?
"Everybody hopes so, we will see."
SUPER CAPTION: Dominique Strauss-Kahn, French Finance Minister
The Socialist-led government has said it wants to ease the pain of reaching the targets for entry into the European Monetary Union by 1999.
Although it wants the Euro launched on schedule, the government wants more time to review the pact in hopes of emphasising the creation of jobs.
It's this approach that contributed to their stunning electoral win more than a week ago.
French voters rejected Chirac and his former conservative Prime Minister Alain Juppe's harder line on reaching the E-M-U criteria.
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