The finance ministers of the members of the European Economic Community agreed on Thursday (March 22) on a tough statement about inflation.
The finance ministers of the members of the European Economic Community agreed on Thursday (March 22) on a tough statement about inflation. But their meeting was deadlocked on the location for the community's monetary fund, due to be set up at the beginning of April.
The ministers' statement, after a five hour meeting, said members were determined to use all appropriate means to stem the rate of price increases and slow the rate of inflation to four per cent -- the limit set for 1973.
The discussions on the site of the monetary fund stalled because of a dispute between Britain and Luxembourg. Britain wants the fund centralised in Brussels with the other key EEC institutions. Luxembourg wants confirmation of a long-standing EEC decision that the fund would be set up in their country. In this, Luxembourg is supported by most member states.
The monetary fund was due to begin operations April 1. If no agreement is reached before then, the foreign ministers of the member states will discuss the question when they meet April 2.