Brussels, 18/02/2004 (Agence Europe) - During a conference organised on Monday in Brussels by the "Friends of Europe", presided by Etienne Davignon, Member of the Executive Board of the European Central Bank (ECB) Tommaso Padoa-Schioppa said the Stability and Growth Pact is "in no way dead" and that it is far too soon to give a judgement on its implementation. While describing the Ecofin Council's decision of 25 November to suspend the excessive deficit procedure against France and Germany as an "unfortunate episode", Mr Padoa-Schioppa stressed that the two Member States dared not ignore the economic demands of the Pact. Also, he noted that the Pact's resistance to time must be considered in relation to its final impact on the budgetary behaviour of Member States. In his view, if the Member States had tended toward budgetary balance, the unfavourable economic situation that has lasted for three years now would not have led the country to budgetary slippage. Mr Padoa-Schioppa also explained in substance that the EU is developing the case-law for the Pact and that the rules should not be rewritten. "All legislation is composed of laws and case-law. We are gradually building up the case-law for the Pact, a Pact that is, moreover, far more flexible than some think (…). Going backwards to rewrite the rules would be a waste of time, as, by rewriting the rules, case-law would have to be started again", he said.
Franz-Christoph Zeitler of the Bundesbank put forward arguments in favour of complying with the Stability Pact (it is necessary, he explained, to avoid conflict between Member States and to ensure prosperity within the euro zone). Regarding the possible changes to be made to the Pact, he said that it was mainly necessary to restore credibility but without affecting its "legal framework".
Professor André Sapir, Commission Adviser, felt for his part that it was necessary to draw lessons from the latest events. In his view, too much attention has been paid to deficits and it is now necessary to place surveillance in a broader context of sustainability and growth.