Brussels, 29/08/2003 (Agence Europe) - During the first session after the summer break, and having met the French Prime Minister Jean-Pierre Raffarin together with the European Commission (see EUROPE of 28 August, p.4), the Chairmen of the EP's three political groups on Thursday told the Press of their different opinions on the implementation of the Stability and Growth Pact.
Socialist Group President Enrique Baron, noting that the Pact had been adopted "before the euro", said: "I have always thought that the pact needed updating".
Not going as far as President Prodi and calling the Pact "stupid", I believe we must show intelligence in its application, declared the Spanish Socialist, adding: "people, and not just the Pact, should not be stupid".
He believes that "current expenditure" and "investments for the future" should not be treated in the same way, meaning that the trans-European networks and the "golden rule" should be excluded from the calculation of excessive deficits. It is illogical "to aggravate the situation with a fine" if a budgetary deficit is increasing, he protested.
It was quite another story with the President of the EPP-ED Group, Hans-Gert Pöttering. Our group, he told the Press, considers itself a "guarantor" for the observation of the "Growth and Stability, or Stability and Growth" Pact, he said (during Wednesday's press conference with Jean-Pierre Raffarin, President Prodi spoke of the "Growth and Stability" Pact, which did not escape the French Premier's notice).
The CDU MEP expressed his surprise that, during the summer holidays, Social Affairs Commissioner Anna Diamantopoulou asked for research and education to be excluded from the calculations of the 3% deficit ceiling.
There is a risk that others will ask for the same thing for infrastructure, or for defence expenditure (which France, notably, has done: ED). He warned: do not imagine that a new debt brings about more growth; on the contrary, it will bring about an increase in interest rates, and growth will suffer.
On the subject of the budgetary difficulties currently faced by France and Germany, the President of the Liberal Group, Graham Watson, told several journalists on Thursday that his group would support the Commission in its determination to demand a strict application of the provisions of the Pact.
If the Commission were ever to find itself in the position of having to fine the Member States in question, it would adopt a "progressive approach" comprising different stages (increasingly specifics recommendations), rather than immediately fining them, said the British Liberal. He believes that the Commission will take account, in this "progressive policy", of the measures planned by Member States to solve their state deficits problems. Mr Watson also said that the euro was something to be very proud of. In view of Sweden's referendum of 14 September and the decisions to be taken by the United Kingdom and Denmark, "the European Commission must ensure that the euro remains credible", he also stressed.