Brussels, 21/05/2010 (Agence Europe) - The task force chaired by Herman Van Rompuy which has been charged with reflection on how to beef up economic governance and improve budgetary discipline in the EU, got down to work in Brussels on Friday 21 May. This was the first meeting of the working group, which will meet again in June and deliver its conclusions in October.
EU finance ministers have been divided, in particular over how to enhance budgetary discipline. Germany wants to toughen the stability pact and put in place new sanctions, such as blocking European subsidies for countries which build up excessive deficits (an option already considered by the Commission) or suspension of voting rights at EU level. Berlin also wants over-indebted states to be declared bankrupt. The German government proposes, too, that its partners follow its example by incorporating within their national constitutions a quantified ceiling for deficits. France made a move in that direction on Thursday, in announcing its desire to seek public finance balance in such a move. The German proposals, as a whole, are “a step in the right direction,” according to French minister Christine Lagarde. France refuses, however, that attention be focused solely on deficits, and intends to place the emphasis on growth and reducing the competitiveness gaps between European countries.
Finance ministers also discussed the idea of a possible joint guarantee on part of national debts, a European source revealed. This proposal does not, however, meet with everyone's approval, especially not Germany's, which has already said it was against joint management of public debt. (L.C./transl.rt)