Brussels, 25/06/2003 (Agence Europe) - On Tuesday, the European Commission confirmed that, "Germany cannot count on European Commission support" for the Schröder government's proposals for the 2004 budget "if they are incompatible" with the rules in the Stability and Growth Pact". This warning was given just when the German government is planing to cut taxes next year (which has reached EUR 18 bio) initially planned for 2005 to stimulate growth but which contains certain dangers to the public deficit in the country. The Commission spokesman recognised that the Commission had been the first last year to recommend a subtle interpretation of the EU budgetary framework but warned that, "the "framework put in place by the Pact has to be respected". The Commission is "sensitive to Germany' economic woes ( as it is to those in the rest of Europe) and was convinced there would be not sustainable solution to its budget problems without a return t growth", explained the spokesman. According to the latter, in order to stimulate growth, priority should be given to implementing structural reforms, notably those involving pensions and healthcare, "for which discussion have not started yet".
The German Chancellor on Friday, had sought a rapid decision on the move forward to 2004 of his programme for tax cuts, which initially were planned for 2005 to give a boost to growth. His Economics and Employment Minister, Wolfgang Clement, confirmed on Tuesday that the government was due to advance the date for tax cuts by one year.