Six EU Member States Reject Reforms To Stability And Growth Pact

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

18 February 2004

In a letter sent to head of the Irish presidency of the European Union, Bertie Ahern, six EU member states issued a warning on the Stability and Growth Pact, arguing that the reforms sought by France and Germany (both of which have breached its terms) should not be necessary.

Signed by the leaders of Italy, Spain, Poland, the Netherlands, Portugal and Estonia, and released just ahead of a trilateral summit meeting between the UK, France and Germany, the letter observed that:

"Economic recovery must respect the principles of macroeconomic stability. Our commitment to sound budget policies should not be questioned."

"The Stability and Growth Pact is an essential element of economic governance in our Economic and Monetary Union and a necessary condition to sustained economic growth that we all pursue, and its rules must be applied on a non-discriminatory basis."

The trilateral summit meeting, which is being held this week in Berlin, was also urged by the six signatories to discuss issues such as employment, innovation, research and development and market regulation.

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