Brussels, 18/10/2002 (Agence Europe) - European Commission President Romano Prodi "doesn't regret a word" of his interview in the French daily Le Monde on the Stability and Growth Pact, declared Commission spokesman Jonathan Faulls on Friday (see yesterday's EUROPE, p.7). Mr. Faull added that Mr. Prodi confirmed that the "the Pact has to be interpreted and implemented intelligently, taking account of economic realities, and that rigidities are stupid". Romao Prodi will be in Strasbourg on Monday to explain himself before the European Parliament, whereas the Commission's spokesman had first said that only Commissioner Solbes would make a statement on the Stability Pact.
Indeed, the Socialist, Liberal and Green groups demanded that Romano Prodi go explain himself personally on the Stability Pact, whereas it had already been scheduled that next week's plenary session should open, at 17.00 hrs., with a Commission statement on the Pact. The President of the Socialist Group, Enrique Baron wants to write to Romano Prodi to ask him to go, declared the spokesperson for the Socialist Group, for whom the words of the President of the Commission, "did not create a good impression". However, like the Green Group, the Socialists quite agree as to substance and are in favour of greater flexibility in the Pact.
As for the President of the Liberal Group, Graham Watson, he launched: "Words are the currency in which politicians trade". Yet, the words used by President Prodi risk "devaluing the European Union's currency on both the political and the financial markets", says the British Liberal Democrat, adding: "Smaller EU countries have worked hard to respect the Growth and Stability Pact. If the Commission President were to appear to give carte blanche to larger countries which flout the rules, the EU would be in serious trouble".
European Council President Anders Fogh Rasmussen did not want to comment on Mr. Prodi's words, arguing that he did not know the details, and simply told the press that the Danish Presidency was not intending to propose changes to the Stability Pact. "I consider the Pact as a way to guarantee the solid nature of our economies in Europe, and believe that we should all stick to a strict interpretation of its criteria", he added, considering that too much laxity with the criteria would weaken the euro and destabilise the economies of the area.
Solbes' reaction
The Commission for the Economy and Finance, Pedro Solbes said on Friday that, with different initiatives taken over the past three years, "the Commission has demonstrated that (…) the Pact (…) is sufficiently flexible to allow for reasonable policies from an economic point of view". The commission will make proposals, by the end of the year, on a "strengthening of co-ordination of economic policies in the current framework", he stipulated, adding: "of course no flexibility can justify poor economic policies". Mr. Solbes made a point of stressing that a "crucial" part of his role as Commissioner for Monetary Affairs was to be the "guardian" of the respect of the rules in the euro zone.
Strong reactions by EPP leaders in Estoril
Mr. Prodi's comments on the Stability Pact led to many reactions at the opening of the EPP conference in Estoril. The Group's President in the European Parliament, Hans-Gert Poettering, again placed emphasis on the need to respect the Pact to guarantee the stability of the single currency, stressing that it would be unacceptable for small countries to b the subject of stricter criteria than the large ones. "A Commission official said that the Stability Pact was stupid", observed the French Prime Minister without citing the President of the Commission. According to Jean-Pierre Raffarin, the Pact's principles are "good" and must be preserved to protect the European currency. "we are aware of the necessary efforts", he went on, adding: "France can respect the work of others. France will do everything to be respectable too". "It's not stability that's stupid, those who are stupid are those who believe that they can accumulate deficits", Luxembourg Prime Minister Jean-Claude Juncker joined in (referring to the management of Socialist governments). The head of the Italian Government, Silvio Berlusconi also pleaded in favour of keeping the Stability Pact.