Brussels, 13/07/2011 (Agence Europe) - EU finance ministers are taking a constructive approach in order to reach agreement as soon as possible on how to change the Stability and Growth Pact (SGP). Speaking on Tuesday 12 July after the ECOFIN Council meeting he had been chairing, the Polish finance minister Jacek Rostowski, said they wanted to go the last mile and reach agreement, although putting the icing on the cake will be more difficult that one might imagine. He said they were likely to achieve this in September of this year. Anxious that speedy progress is made, EU Economic and Monetary Affairs Commissioner Olli Rehn hoped agreement would be possible before the summer break (although the European Parliament would not be able to vote on the final draft deal until September). The credibility of the eurozone is at stake as fears circulate about the ability of big euro countries like Spain and Italy to meet their budget targets, leading to frazzled nerves on the money markets.
On Monday, the Eurogroup decided to continue negotiating with the European Parliament in order to implement ambitious reforms as soon as possible, said Rehn, pointing out that stronger economic governance had to be introduced immediately.
The EP and the Council of Ministers agree on more than 95% of the suggested changes to the SGP that will tighten up budget surveillance and introduce monitoring of macroeconomic imbalances across Europe, but the talks are in stagnation over whether to introduce reverse qualified majority voting when the Commission judges that a country has not taken enough measures to correct its budget deficit and/or debt levels (see EUROPE 10409). The EP is backed by the European Central Bank in its support for reverse qualified majority, but the Council of Ministers rejects it, despite enthusiastic support from member states like the Benelux countries
Despite warnings to the contrary from the Christian Democrats, the Liberals at the EP are the MEPs most actively calling for a solution that is as EU-based as possible. Belgian MEP Guy Verhofstadt, who headed a delegation of ALDE MEPs that travelled to Warsaw recently to meet the Polish Presidency, said that ALDE had explained that it wanted reform of the SGP (still under negotiation with the Council of Minsters) to lead to more credible preventative measures, including more automatic penalties. (M.B./transl.fl)