Brussels, 14/09/2011 (Agence Europe) - The Polish Presidency and the European Parliament negotiators continued their talks on Wednesday 14 September with a view to reaching agreement later this month on reform of the Stability and Growth Pact. Close sources suggest the meeting had been “positive”, and the EP rapporteurs were due to meet up again later that evening. The main sticking point is how decisions about penalties are to be taken (rejection of a Commission recommendation by a simple reverse majority if the Council of Ministers fails to react within a month) and this is covered in the current compromise under discussion (see EUROPE 10447). The EP seems to be tempted to demand greater concessions from the ministers. Under pressure from the Liberals, it is reported to be demanding expansive economic dialogue (whereby eurozone countries would have to explain their performance and behaviour to the EP). Under pressure from the Social Democrats, it is also reported to want to secure guarantees about even-handed monitoring of macroeconomic imbalance to ensure that countries in surplus (like Germany) also get closely monitored. The decision-making deal looks watertight, but the EP now wants to address other issues, suggest Council of Ministers' sources. During a debate in plenary at the EP, Guy Verhofstadt (chair of the ALDE Group, Belgium) criticised the latest compromise deal put forward by the Polish Presidency, describing it as a step backwards compared with the previous versions. (M.B./transl.fl)