Left-wing politicians are on the ascendancy in Europe. At a recent summit of European Union leaders, only two of the heads of government attending -- Jose Maria Aznar of Spain and Bertie Ahern of Ireland -- could be labeled "conservative," observers say.

But both left-wing and conservative leaders were united in support of the European Monetary Union. European business interests reportedly see the euro, the new European currency, as a way to save on expensive currency exchanges and a means to greater competition in consumer markets. In the view of some analysts, the reason the left supports the euro is that it may save the continent's expensive and failed welfare systems.

• As 1999 arrives, 11 of the 15 European Union member nations will start using the new common currency.

• If the experiment succeeds, the material benefits for the nearly 300 million people who live within the new EMU could be huge as the risks of currency exchanges are reduced.

• But observers say that if the left takes monetary union as a cue to further expand welfare, it could easily wipe out the gains expected.

• Even though unemployment stands at 18 million in EU countries, left-wing politicians -- particularly those in the new German government -- are proposing heavier taxes on corporations, which are now preparing to head for the exits.

Germany's Green activists want to shut down nuclear power plants, a major source of electrical power. Such a move, critics insist, combined with higher taxes to finance the welfare state and corporate flight, could sink the euro at birth.

Source: George Melloan, "Europe's Sharp Left Turn Clouds the Euro's Future," Wall Street Journal, October 27, 1998.