Brussels, 10/03/2006 (Agence Europe) - After adopting the opinions on twelve stability or convergence programmes at meetings on 24 January and 14 February, the Ecofin Council will examine the situation in a final group of Member States on 14 March. This group comprises thirteen Member States - Germany, France, Italy, Spain, Portugal, Greece, Ireland and the Netherlands on the one hand and the United Kingdom, Poland, Lithuania, Cyprus and Malta on the other - whose situations were analysed by the Commission in late February or early March (see EUROPE 9137 and 9142). On Monday evening, the Eurogroupe broached this issue, and also the Italian and German excessive deficit cases.
Next Tuesday, Finance Ministers are expected to recommend moving to the next stage of the excessive deficit procedure against Germany, but are likely to be satisfied with measures taken by Italy. With a 3.3% deficit in 2005, for the fourth consecutive year Berlin was above the ceiling set by the Stability and Growth Pact (SGP). The Commission, therefore, recommended the opening of the procedure for excessive deficit and required Germany (Article 104§9) to return below the 3% bar by 2007 at the latest (see EUROPE 9142). In 2003, Ministers refused to follow Commission recommendations and move to the stage in the Pact which would have meant opening proceedings against Germany and France. The reformed Pact offering greater flexibility, Ministers are expected this time to go with the Commission's opinion, and this seems to suit Berlin too. Measures taken by Italy in 2005 will probably see it escape the next stage in the procedure. Stating that the 2005 objective seemed to have been reached, with a deficit of 4.3% of GDP, the Commission decided Rome would be able to drop to 3.5% in 2006 and to 2.8% in 2007 (see EUROPE 9137). The Commission insists, however, that the 2006 budget be followed to the letter and that further corrective measures be taken in 2007.
Ministers will also finalise their submission to the European Council of 23 and 24 March. Just as they did at their previous meeting (see EUROPE 9131), they will consider the progress reports produced by the Commission at the end of January as part of the revised Lisbon Strategy (see EUROPE 9117) and the possibility of having the European Investment Bank (EIB) contribute to growth and employment targets. They will also touch on progress made in cutting red tape for business and will become acquainted with the joint Council-Commission report on inclusion and social protection (presented at the Employment Council on 10 March)./
The Ecofin Council will also probably adopt a recommendation of a discharge to the Commission for the final passing of the 2004 budget and the conclusions on budget priorities for 2007. The discharge is likely to be granted, but some delegations point out that it has been over ten years since the Court of Auditors had provided a positive Statement of Assurance on overall budget spending.
At lunch, Ministers will discuss the energy market situation with, as a point of reference, recent mergers and the Commission's Green Paper (see EUROPE 9147).