Brussels, 15/11/2004 (Agence Europe) - Before tackling the Stability and Growth Pact, where finance ministers had left the matter, following the informal Council in September, Joaquin Almunia again appealed for pact reform. In a column in the Financial Times on Monday, where an exchange of views took place from Eurogroup, the Commissioner for economic and monetary affairs indicated the orientations he had set out in September (EUROPE 4 September p 7). Almunia made a strong appeal for determined political action to deal with the most sensitive issues that were still pending in this debate.
In the context of the recent Kok report, Mr Almunia said that "Lisbonisation of the pact" was needed to integrate the Lisbon objectives of growth and jobs in the analysis of the public financial situation of Member States. He once again highlighted the need for a better taking into account of future debt of Member States. According to the Commissioner, "A Union of 25 cannot afford a one-size fits all fiscal policy given the differences between the structures of each country's economy, potential rates of growth and problems caused by ageing and retirement".
According to Almunia the other element for revitalising the SGP could be a more subtle application of the excessive debt procedure that takes into account specific national situations and which is based on a less strict definition of exceptional circumstances. This final issue has often been excessively dramatised but it would be unrealistic to not deal with it at all, explained the Commissioner. He also explained that this did not mean allowing Member States that did not comply to budgetary discipline a free ride to find a better and more credible way of , "taking into account cyclical developments and sustainability considerations when applying the excessive debt, when Member States make recommendations to another Member State and when deadlines are set".