(Finance) – On the revision of the rules of the Stability and Growth Pact “The objective of our proposal is to have gradual trajectories but more effective on the rdebt reduction and at the same time be able to encourage public investmentespecially on our common priorities. These two needs should go hand in hand”. This was stated by the European Commissioner for the Economy, Paul Gentiloni, that coming at Ecofin expressed appreciation for “the very positive evaluations of the International Monetary Fund on our offers”. “We hope to have today” constructive discussions and “we know that time is not unlimited” and that to have new rules for the next budget cycle “we need an agreement in the next few months”he added.
What is certain is that the Germany will assert its position, in particular, insisting on the request for automatic and generalized rules on the reduction of debt-GDP, in the revision of the Stability and Growth Pact. Indeed, on the strength of the letter sent yesterday by 11 finance ministers of the euro area, the German Christian Lindner claims not to be alone in these positions. “There are many more countries than these 11 who share our position and who want to work in the same direction”.
As far as France has one position clearly contrary to automatic and uniform rules, uone size fits all, to be imposed for the budgetary policies of member states, because they have already proven not to work and to have disastrous effects, said French Economy and Finance Minister Bruno Le Maire, speaking to reporters upon his arrival at the Ecofin today in Luxembourg, which has on its agenda the discussion on the proposal to reform the Stability Pact, presented by the European Commission in April. “Now we want to get to the heart of the matter, at the heart of the discussion. We want to reach an agreement on the Stability and Growth Pact under the current Spanish Presidency” of the EU Council, in the second half of this year. “I always prefer to see what unites us among Europeans, rather what divides us. There are many things that bring us together: I think that the fundamental principles that have been established by the Commission bring together a very large majority of European states”, observed the French minister.