Brussels, 20/01/2009 (Agence Europe) - In a document adopted at their meeting in Brussels on Tuesday 20 January, EU Finance Ministers reaffirm their commitment to consolidating the finances of their countries in due course. The document, which articulates the messages for the EU economic and budgetary policy in 2009, is “an extremely positive signal from the Council,” Council President in office Miroslav Kalousek told press. At this stage, while measures to respond to the financial crisis still had to be put into effect, there was no point in discussing an adjustment timetable or a definite deadline for reaching medium-term objectives. This could be done later, for the moment it was the rule that was restated.
“While budget deficits will increase in many member states in the short run, and a number of member states will temporarily exceed the deficit reference value, we remain fully committed to sound and sustainable public finances,” say the ministers. The rules of the Stability and Growth Pact (SGP) were, they said, sufficient to deal with these exceptional situations. Thus, in the event of an excessive deficit procedure, “the adjustment path and recommendations will take into account this exceptional situation” and “these procedures should be seen as an instrument for constructive peer pressure, helping to return to sustainable public finances”. Beyond that, “we are all committed to return to our consolidation path towards medium-term budgetary targets as soon as possible, keeping pace with the economic recovery. The coordinated fiscal stimulus will thus be followed by coordinated budget consolidation,” ministers state.
Noting the “decisive measures” taken by the member states to stabilise their financial and banking markets, they also highlight the major concern of the moment. “Currently, restoring the proper functioning of credit channels, where necessary, is a very important task,” say ministers, acknowledging that the impact on the real economy of all these measures will take time and, meanwhile, a period of negative economic data is expected. (A.B./transl.rt)