Brussels, 22/03/2005 (Agence Europe) - The Governing Council of the European Central Bank (ECB) is ”seriously concerned about the proposed changes to the Stability and Growth Pact”, the ECB announced on Monday in a press release. Firmly opposed to any change to the text of the Pact and to making the corrective arm more flexible, the ECB simply wishes to strengthen the preventive arm with “some proposed changes … in line with its possible strengthening”. It trusts that the changes to the corrective arm will not 'undermine confidence in the fiscal framework of the European Union and the sustainability of public finances” as “sound fiscal policies and a monetary policy geared to price stability are fundamental for the success of Economic and Monetary Union”. Reaffirming its mission in this way, the ECB, which feels resigned, insists that the Member States, the EU Council and the Commission should do their part of the work and “implement the revised framework in a rigorous and consistent manner conducive to prudent fiscal policies”. The new formula of the Pact calls for certain changes or legislative clarification, especially Regulation 146/97 aimed at accelerating and clarifying the implementation of procedure for excessive deficit. These changes mainly concern the taking into account of structural reforms and “relevant factors” as well as longer time limits (yesterday's EUROPE, p.10).
The last sentence of the ECB press release contains a veiled reference to the possibility of a rise in interest rates, saying: “The public and the markets can trust that the Governing Council remains firmly committed to deliver on its mandate of maintaining price stability”.