Brussels, 10/12/2013 (Agence Europe) - The Lithuanian Presidency of the Council of the EU did not manage on Tuesday 10 December to get the 28 member states to agree to a compromise deal on the draft regulation to change the rules on balance of payment aid for member states not in the euro that was tabled by the European Commission in June 2012.
Euro Commissioner Olli Rehn said he was very disappointed because the Presidency's compromise was a very good basis. Unanimous agreement is required and the United Kingdom let it be known that it would be vetoing the changes. British Finance Minister George Osborne said the existing system was enough and worked very well. Germany and the Netherlands agreed that there was no need to change things because bank recapitalisation via macroeconomic structural adjustment programmes is already in existence.
The European Central Bank, Poland, France and Denmark backed the compromise which they felt was “balanced”. Romania issued a few doubts about, for example, the fact that the regulation would not apply to existing balance of payment aid programmes.
Rehn said he hoped to convince the UK of the need to update Regulation 332/2002. He said the existing mechanism did not take enough account of the two-pack adjustments to the stability and growth pact that introduce post-programme surveillance and did not take account of the speed at which financial aid is set up for countries in the eurozone (aid from the EFSF and ESM). The draft regulation changes the criteria and procedures for balance of payments aid and surveillance, boosts dialogue with national and European parliaments in implementation and gives the Commission the option of raising funds from the financial markets at the most appropriate moment.
The question will now be handed over to the Greek Presidency. (EL/transl.fl)