May 15, 1998

President of Italian central bank warns that next few years will be 'purgatory' for Italians as economy adjusts to European demands and adapts to single new euro currency; Italian businessmen are preparing for euro in different ways; Italian companies with markets overseas welcome euro, which will lift burden of converting lira to dozen different currencies; but Italian retail trade fears that converting cash registers and consumer behavior to new money will be costly; contrasts in expectations are being felt throughout Europe, but they are starkest in Italy, as are potential gains and wrenching costs; photos; graphs; map (L)

Microsoft Wins Reprieve From Big Antitrust Action Less than an hour before state and Federal Governments were set to file sweeping antitrust suits against the Microsoft Corporation, the company postponed the release of its new Windows 98 operating system so it could hold settlement talks that were likely to last through the weekend.

Texas Rangers defeat New York Yankees, 7-5; photo (M)

House overwhelmingly approves bill to punish foreign countries that persecute people for their religious beliefs; lopsided vote, 375 to 41, masks many lawmakers' ambivalence toward a popular bill that aims to champion religious liberties worldwide, but which critics say will imperil religious minorities, create hierarchy of human rights violations, and hurt United States foreign policy; under bill, countries that permit or endorse pattern of violent attacks or other persecution of religious believers would automatically face cutoff of United States aid, other than food and medical supplies, restrictions on exports and American opposition to loans by international financial institutions, including International Monetary Fund; among countries criticized in debate are China, Pakistan, Indonesia and Sudan; bill is unlikely to be adopted by Senate, which is expected to pass a measure giving President more flexibility in dealing with nations accused of religious persecution (M)

Microsoft's last-minute gesture toward Justice Department speaks volumes about the company; Microsoft may have take-no-prisoners corporate culture and antagonism toward Washington, but company is ultimately guided by pure logic of business; Microsoft's strategy of fiercely resisting accommodation with Government and then finally coming to negotiating table is precisely approach it took when it reached earlier settlement with Justice Dept, in 1994; Microsoft is apparently willing to agree to some restrictions if that will persuade Government not to intervene further; fact that both sides are now seeking to reach settlement without going to court does not mean accord will in fact be reached (M)