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Will the European Union and its joint currency hold together?
After all a joint currency will not work without a joint fiscal and economic policy.
That is when 11 European countries will replace their currencies with one joint currency, the euro.
A weak central government would be confined to such matters as foreign policy, customs, postal services and a joint currency.
The Westminster government has consistently said no to a joint currency; the nationalists' position seems to amount to an insistence that this was bluffing.
The past year saw Mrs. Merkel successfully push through Berlin's vision of a long-term overhaul to the fiscal rules that govern Europe's joint currency.
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The European Central Bank, headed by Mr. Trichet, a Frenchman, oversees the 12-country joint European currency, the euro.
Mr. Nakasone also said that it was difficult for Japan to obtain American cooperation for joint intervention in currency markets to prop up the dollar.
The pact did have a side agreement that, in another first for trade accords, included the parties' "joint declaration" against currency manipulation, required them to report interventions in exchange markets and set annual meetings to discuss any disputes.
Speculation had increased lately that Mr. Sakakibara would be replaced in this month's annual Finance Ministry personnel shuffle, but that was before the joint Japanese-American currency intervention last week, in which he played a key role.
This included a variety of financial decisions: joint intervention in currency markets and monetary and fiscal policy.
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