Finance ministers from the eleven European Union countries which have signed up for the single European currency have begun their first meeting in Luxemburg.

The Euro-11 is an informal group which oversees the running of the single currency scheduled for 1999, and coordinates economic policy in the euro countries.

Ministers from the four EU countries outside the euro zone Britain, Sweden, Denmark and Greece do not take part in Euro-11 discussions and they have criticised the meetings, saying they may create a two-tier union.

The first meeting is expected to focus on budget deficits and government debts in the member countries.