Brussels, 02/06/2004 (Agence Europe) - On Tuesday evening in Luxembourg, the Economy and Finance Ministers of the euro zone briefly discussed improvements to the Stability and Growth Pact. Commissioner Joaquin Almunia announced to the Eurogroup that he would present new ideas on the theme on 16 June, at the moment when the last report on public finance in EMU is adopted by the European Commission. A difficult discussion on reform of Pact procedures could therefore begin early July, at the start of the Dutch Presidency, although ministers had expressed the hope last November that they would have time for reflection after the political and institutional quarrels linked to suspension of excessive deficit procedures initiated against Germany and France.
During the press conference after the Eurogroup meeting, Mr Almunia said the experience had shown that "weaknesses have appeared after five years of EMU operation". The discussion confirmed how important it is to strengthen budgetary surveillance and coordination of economic policies, Mr Almunia added. He recalled that the Commission had launched this debate in November 2002 and confirmed that it "will come up with ideas later in the year". In his view, this is the "right time" to evoke the subject of economic governance and improvements to the Stability Pact and "it is encouraging to see ministers getting down to the debate".
In response to press questions, Mr Almunia specified that the Commission will place on the table mid-June "not only proposals but also ideas" intended to "enrich the debate and contribute to obtaining, in coming months or terms of presidency, an agreement on the need to adjust the Stability Pact to experience gained and to the new circumstances". By way of conclusion, Mr Almunia gave his assurance that everyone agreed on the "need for the Pact and for budgetary discipline" and also on the need to improve certain provisions for implementation of the Pact.
Eurogroup President Charlie McCreevey recognised that not all ministers agreed on matters for which coordination was necessary. He also recalled that, in November last, ministers had agreed to give themselves time for thought "until the autumn or perhaps 2005" before discussing improvements to the Stability Pact. "The situation has not changed, even if we regularly refer during our meetings to certain elements of the Pact", he concluded.