Belgium's Verhofstadt raps 4 states' meet on markets

By Gavin Jones and David Milliken

VALLETTA (Reuters) - Belgian Prime Minister Guy Verhofstadt said on Saturday Europe must tackle its economic problems together, to avoid meetings of select groups like the ones planned this month by Britain, Germany, France and Italy.

Speaking at a ceremony to celebrate Malta's adoption of the euro, Verhofstadt said the euro zone should take joint action to tackle rising inflation.

"What happens otherwise?" he asked rhetorically. "What is happening now? Four big countries of the Union gather together. A group of big member states want to discuss the financial situation with possible consequences for the entire Union."

Verhofstadt said the problem of inflation in the euro zone, which was stable in December at a six-and-a-half year high of 3.1 percent, "proves more than ever that the euro zone and the European Union need socio-economic governance".

A spokesman for Prime Minister Gordon Brown said on Friday that Brown will meet the leaders of Germany, France and Italy in London on January 29 to discuss global financial market turbulence.

Those talks will be preceded by a meeting of the four countries' finance ministers, expected to discuss the same issues, in Paris on January 17, a French finance ministry spokesman said.

Verhofstadt's comments threw an isolated note of controversy into the Maltese celebrations, attended by top EU officials, prime ministers and central bank governors from around Europe.

"The euro zone has a currency, a strong currency, and has to be able to outline a corresponding policy," Verhofstadt said. "It is only by cooperation and by outlining an economic policy that we can provide an answer to the challenges we face today."