Ministers van Financiën willen versterking euro, Italiaanse minister hint naar terugkeer lire (en)

In their first meeting after the double rejection of the EU constitution, eurozone finance ministers are to discuss on Monday (6 June) last week's disruptions to the single currency's exchange rate after the vote in France and the Netherlands.

The euro dropped to an eight-month low against the dollar, following the Dutch referendum on Wednesday (1 June).

But it is still well above its launch value against the US dollar, and its recent decline is expected to boost exports in the eurozone.

Italy hints at relaunching lire

Following media speculations over the possible break up of the EU's 12-member monetary union, sparked by reports about discussions over such scenarios been held in Germany, the psychological attack on the euro was strengthened even further by statements by Italy's welfare minister, suggesting Rome could leave the single currency.

Welfare Minister Roberto Maroni said the country should hold a referendum to decide whether to return to the lire, its old currency, La Repubblica reported on Friday.

Italy is currently under the European Commission's spotlight for its deficit, which has breached the eurozone's limit of 3.0 percent of gross domestic product (GDP) in the past two years.

The Bank of Italy expects the fiscal deficit to reach as much as 4.0 percent of GDP this year.

The EU executive is set to open "excessive deficit procedures" against Italy at its meeting in Strasbourg on Tuesday.

New euro rules tested

Eurozone finance ministers will also take a look at the public finance prospects for the next two years in Greece, Portugal and Italy, as they meet in Luxembourg today.

The scheduled discussions are considered as the first test of the amended Stability and Growth pact - the rules underpinning the euro.

The European Central Bank (ECB) has expressed fears the countries would use its more relaxed version to run higher public deficit, instead of introducing crucial labour market reforms to boost their economies.

On the other hand, the ECB is facing increasing criticism from some of the eurozone's governments for its reluctance to change the interest rates - preserved at 2 percent for two years.

However, ECB chief Jean-Claude Trichet i signalled last week the Bank could eventually cut the borrowing cost rates, pointing to a need to boost consumer confidence, according to the Financial Times.