EU stresses greater monetary reserves

The European Union (EU) has sought consultations with India on money matters, including a proposal that New Delhi should have more monetary reserves with the Union in order to strengthen links between the rupee and the euro, according to a senior diplomat of the EU.

Francisco da Camara Gomes, the EU's envoy to India, said the two sides were holding discussions on how to put in place an early warning system and a system of mutual consultations so that pre-emptive measures could be taken to stabilise financial flows.

Gomes said the Indian government had also sent a proposal on deepening monetary cooperation. He said the Doha agenda was high on EU Trade Commissioner Peter Mandelson's priority list for discussions with his Indian counterpart. Mandelson is also expected to raise bilateral trade issues.

"The visit will focus on setting up a common agenda for joint initiatives both at the WTO and bilaterally," Gomes said.

Mandelson is slated to call on Prime Minister Manmohan Singh and meet industry representatives besides holding talks with Commerce and Industry Minister Kamal Nath.

Steinmetz said under the ongoing strategic partnership dialogue with India, the EU was keen not to limit itself to just discussions on outsourcing, WTO and anti-dumping, and foreign investments, but strategic and political issues including West Asia, reforms of the United Nations and non-proliferation as well.

While the EU has mopped up $ 2 billion as assistance to help victims affected by the Tsunami, Gomes said its member countries will soon consider the setting up of a rapid intervention force on a permanent basis which can be mobilised at short notice to provide assistance in disasters like the Tsunami.