Brussels, 13/05/2004 (Agence Europe) - German Chancellor Gerhard Schröder said on Wednesday when speaking to journalists in Potsdam that, in the eyes of the German government, the Stability and Growth Pact remains valid but that, "during this phase, it is really necessary to interpret it in a way that is geared toward growth". Sensible changes to the Pact to be discussed by the Commission and by "others" will "still receive positive support" from the federal government, Chancellor Schröder said. Compliance with the Pact depends on various factors, Gerhard Schröder added, "for example, our capacity to reach the growth rates we need" to meet the stability criteria "without creating difficulties for our economic situation". In his view, after three years of stagnation and an uncertain economic period, it is necessary at the present time to recall that the Pact is not only aimed at stability but also at growth and to therefore enhance the "growth elements".
Noting the debate under way on the question of whether the 3% of GDP ceiling for public deficit is the only reasonable economic criteria to be met, Mr Schröder notes that it is a question on which there will be intense discussion over months to come. We recall the president of the German Social Democratic Party (SPD), Franz Münterfering, said on Tuesday that Europe should decide whether it is more important to keep public debt below the 3% mark, or rather step up spending for research and education to 3% of GDP by 2010, according to the Lisbon strategy.