Brussels, 26/11/2003 (Agence Europe) - While stressing the need for greater budgetary discipline, the European Commission announced on Wednesday that it will soon present a new initiative with a view to improving economic governance in the EU, after the Ecofin Council's decision to suspend the excessive deficit procedure initiated against France and Germany (yesterday's EUROPE, p.6).
In a press release, President Prodi does not at this stage evoke the opening of procedure before the Court of Justice but considers that the Council must not take measures aimed at suspending or amending the Pact each time that it considers its provisions are too severe or ill adjusted. "There cannot be à-la-carte rules. We must all comply with the Treaty and the Pact", he said. "We need stronger economic governance for our single market and our single currency. To this end, we shall develop an initiative for better economic governance in the EU", Mr Prodi announced, considering that the progress already made on this at the Convention "must not be brought into question by national or short term interests".
On the subject of the budgetary commitments of France and Germany, the Commission explains that it had called for greater effort to be made as, it says, there is a "serious risk" that these countries' deficits will exceed 3% of GDP for the fourth year running in 2005. "Close surveillance is therefore needed", Mr Prodi stresses.
The spokesperson for Commissioner Pedro Solbes said on Wednesday that the Council's political compromise could pose problems for the Commission for its assessment of Member State stability and convergence programmes and the preparation of Broad Economic Policy Guidelines (BEPG). He also recalled that the Council conclusions, as seen by the Commission, are "not accompanied by a good legal base".