Brussels, 29/10/2013 (Agence Europe) - On Tuesday 29 October, the European Commission said that giving member states more time to meet their budget targets was a carefully thought-out move that was accompanied by reform requirements and monitoring by the Commission. It was reacting to a speech in Madrid on Monday 28 October, in which the head of the Eurogroup, Jeroen Dijsselbloem, said that he felt that the extra time had been granted unconditionally.
The Commission said it agreed with the broad thrust of Dijsselbloem's speech, but Chantal Hughes, a Commission spokeswoman, pointed out that EU Economic and Monetary Affairs Commissioner Olli Rehn had said on several occasions that, if a country is given more time to cut its deficit, then it will clearly be expected to take the necessary structural reform measures and the Commission was keeping a very close eye on this.
Given the unfavourable economic climate, countries like France and the Netherlands were given more time in the spring of 2013 to achieve their deficit reduction targets. Dijsselbloem said in Madrid that this clemency was now being granted unconditionally and he felt that deviating from the stability and growth pact norms should be linked to tangible introduction of reforms. Germany, a fervent defender of budget orthodoxy, called at the European Summit last week for “competitiveness contracts” to be signed in December by eurozone nations and the European Commission, through which the countries would receive financial aid in return for reforming their economies. Budget surveillance was stepped up when the “two-pack” rules came into force in May 2013. (EL/transl.fl)