Brussels, 05/12/2012 (Agence Europe) - Cypriot finance minister Vassos Shiarly said after the ECOFIN Council on Tuesday 4 December that agreement was very close on the “two-pack” update of the Stability and Growth Pact. This two-pack of new rules would require member states to subject their draft budget for the following year to the European Commission in the second fortnight of October so that the Commission can request changes it feels are necessary to meet the country's budget objectives.
The negotiations are still in deadlock over how to refer to EU budget solidarity tools (the redemption fund and eurobills). The European Parliament wants the new EU rules to ask the Commission to carry out a detailed feasibility study of the redemption fund and eurobills ideas mentioned in the blueprint on boosting economic and monetary union (EMU) (see EUROPE 10740). Germany, backed by France and Italy, says it is too soon for this because the European Summit of 13 and 14 December has not yet decided on its “roadmap” on the future of EMU. A unilateral statement by the Commission on the suggested budget solidarity tools might help the Parliament and ministers reach final agreement on the two-pack. (MB/transl.fl)