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Europe Daily Bulletin No. 8969
Contents Publication in full By article 13 / 43
GENERAL NEWS / (eu) ep/economy

Juncker wants to avoid delay on pact reform and seeks closer dialogue with ECB on rates

Brussels, 15/06/2005 (Agence Europe) - A full programme for the Luxembourg prime minister on the eve of the European Council, after he had met the European leaders in turn, as part of the pre-summit consultations. Wednesday was the occasion for an exchange of views with the economic and monetary affairs committee. Due to pressures of the event, discussions focused, of course, on financial perspectives (see other article) but Jean-Claude Juncker had initially tried to rally politicians round reforms of the stability and growth back after they had got warmed up with the text adopted by the Council on Monday because it does not take into account European Parliament amendments (EUROPE 8965). Despite the insistence of the presidency, the Council work group did not maintain the amendments, pointed out Mr Juncker who also explained that some of them had been very involved in drafting the text on reform of the pact or the Council's conclusion on governance statistics (EUROPE 8962). He said that he understood Parliament's irritation and acknowledged that before calling on MEPs to proceed with procedures they would try and avoid making amendments to the text. Othmar Karas (EPP-ED, Austria) rapporteur on the subject justified the presentation of the new amendments on the question of “parliament's pride”. Juncker repeated that it was necessary to work as quickly as possible. If the corrective part of the pact (regulation 1467/97 on implementation of excessive deficit procedures) had to enter into force normally “there would be potentially enormous delays if Parliament did not accept the changes” (to the preventive part of regulation 1466/97), he underlined. Luxembourg Socialist Robert Goebbels said that the PES group may ratify the Council's common position on the regulation on monitoring the budgetary positions and coordination of economic policies (which will be tackled in the second reading by parliament in the framework of the cooperation procedures).

On issues recently tackled by Eurogroup, Juncker confirmed that the debate on external representation of the euro zone had been “drawn out and ridiculous” due to the fact that some Member States found it hard to get away from their traditional roles in bodies such as the G7 and G8. He added that he was referring less to those in the euro zone and more to those hesitating about joining it. Asked in passing if parliament would tackle the subject, he explained that the G7 had its best days behind it and that a real international body would be the G20 and whose composition would be more “varied but more complete”. The European Commission will represent the EU in this area, where ministerial representation still needed to be verified, he indicated. Very keen on the independence of the European Central Bank (ECB), Juncker said that Eurogroup had to be able to begin a decent debate with monetary leaders without these exchanges having to rebound on the outside. He confirmed that finance ministers from the 12 had had a debate during their last meeting on “ exchange and interest rates” but that such exchanges should not translate into public declarations. As the College has still not got an agreement on the subject, Juncker again appealed for a report and a proposal on the voluntary airline passenger contribution to development aid. The Luxembourg prime minister and minister for finance was cutting in his tone when explaining that the Council should not decide in a corner preventing the Commission using its right to put forward proposals. He added that the Commission should not let itself be undermined too easily with the argument, “that the College is finding it difficult to get an agreement” (EUROPE 8963).

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