Consensus Over Stability And Growth Pact Edges Closer

by Ulrika Lomas, for LawAndTax-News.com, Brussels

25 February 2005

According to reports, divisions between EU member states over reforming the Stability and Growth Pact are slowly being resolved.

Several of the Eurozone's larger members, including France and Germany are keen to see the terms of the Pact relaxed, especially the stipulation that members of the single currency must not run deficits of more than 3% of GDP.

However, other countries, such as the Netherlands and Austria are keen to see fiscal discipline upheld .

Speaking to reporters following last week's meeting of EU Finance Ministers, Jean-Claude Juncker, chairman of the ECOFIN group and Prime Minister of Luxembourg, explained that:

"There are still disagreements but where there are disagreements, positions have come considerably closer together."

Meanwhile, German Newspaper, Die Welt suggested on Wednesday that the German government may be prepared to make a still larger contribution to the EU budget in return for a more flexible Stability and Growth Pact.

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