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Europe Daily Bulletin No. 10324
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GENERAL NEWS / (eu) eu/eurogroup

Poland supports Franco-German pact but at EU27 level

Brussels, 25/02/2011 (Agence Europe) - Poland considers that enhanced integration of member states' economic policies is the appropriate response to the crisis. It completely supports Franco-German demands included in the competitiveness pact (including some of the most demanding requirements). However, it also wants to participate in the Eurogroup summit on 11 March and is formulating a broader framework than the “17+” (members of the Eurogroup, in addition to other interested member states), planned for the coordination of eurozone economic policies, which is aimed at avoiding the growing division between current member states in this zone and other EU member states.

This was disclosed in the informal document distributed on Wednesday 23 February by the Polish government to other member states, in response to the European Council conclusions on 4 February. This information was also revealed in an interview with the Polish under secretary of state for European affairs, Mikolaj Dowgielewicz, to the online newspaper, EUobserver.com.

In its document, the Polish government expressed full support for all the demands formulated by Germany in the competitiveness pact, including those demanding constitutional amendments in order to strengthen budgetary discipline and orientate convergence towards a common band for corporate taxation, uncoupling salaries from inflation, a common retirement age, an “ambitious” reform of the pension systems and, above all, greater economic integration. The Polish government underlines that Poland has already included a limit of public debt to 60% of GDP in its constitution and indicates its willingness, during its six-month presidency of the EU (in the second half of 2011), to share its “best practices” with other member states and to make as much progress as possible in the measures advocated in the Single Market Act.

Nonetheless, Poland is highlighting the fact that a strong response to the crisis cannot be found unless there is full participation from all stakeholders: measures advocated at Eurogroup level have implications for all member states, including those that have not yet adopted the single currency. This is why, by placing its position on the conclusions of 4 February summit, it is suggesting that the “17+” formula is replaced by a “27-” formula open to all member states, except those that overtly do not want to be involved in it. In order to accomplish coordination of economic policies, Poland is expressing its clear preference for the Community method, compared to individual efforts made by different member states. It considers that the European institutions, particularly the Commission with its initiative prerogative, are “an efficient body for reconciling the interests of the member states”. (F.G./transl.fl)

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