Brussels, 05/01/2012 (Agence Europe) - The Danish Presidency is determined to ensure proper implementation of the Stability and Growth Pact (SGP) and is planning to ensure that the new rules on stricter penalties for failing to meet SGP recommendations are applied in a coherent manner. The revised SGP was introduced last autumn after a long battle between the EU Council of Ministers and the European Parliament. It introduces stricter budget discipline rules and a new method for correcting macroeconomic problems with tougher penalties from which it is more difficult for member states to wriggle out.
In the macroeconomic field, the Danish Presidency aims to encourage the coordination of economic and budget policies by means of the European semester. Working on the Economic Growth Review for 2012 unveiled by the European Commission in November 2011 (see EUROPE 10501), it will coordinate the various meetings of European ministers that will draw up economic and budget guidelines to be endorsed by the Spring European Council. Meanwhile, member states will submit their own stability and growth programmes to Brussels. The Commission will examine the reports and the June European Council will issue separate recommendations for each country that member states will be expected to incorporate in their budgets for 2013. The Danish Presidency is required to promote agreement in principle among the member states on the new EU legislation that gives the Commission powers to intervene ahead of a country introducing its budget (see EUROPE 10501). Denmark will also be working to ensure that in practice the Euro Plus Pact addresses tangible economic challenges.
Financial regulations. Copenhagen's time at the helm of the EU will be used to focus on draft (and future) legislation to harmonise action at EU level to deal with the failure of banks active in more than one country; a package of legislation requiring banks to set aside a higher percentage of high-quality capital; and revision of EU financial instrument rules. It will try to get EU legislation passed on derivatives and revising the rules governing credit rating agencies.
Finally, the Danish Presidency will coordinate an EU approach for the upcoming G20 meetings and similar global events. (MB/transl.fl)