WebProNews

German chancellor, Gerhard Schrder, wants to loosen the EU's fiscal rules so Germany and other countries can be allowed to run significant budget deficits.

"The stability pact will work better if intervention by European institutions in the budgetary sovereignty of national parliaments is only permitted under very limited conditions," said Schrder. "Only if their competences are respected will the member states be willing to align their policies more consistently with the economic goals of the EU."

"German Finance Minister Hans Eichel said planned changes to EU rules that limit budget deficits and debt levels in the euro region won't alter the two existing numerical thresholds".

"What we will not change is the Maastricht Treaty's wording, especially not the wording on the 3 percent of gross domestic product on deficits and 60 percent of GDP on debt," said Eichel.

Jean-Claude Juncker, Luxembourg's Prime Minister and current chairman of the EU wants to "strike a deal on reforming the pact by a March 22-23 EU summit that is meant to tackle long-term reforms to the 25-nation bloc's weak economy."

WebProNews | Breaking eBusiness News
Your source for investigative ebusiness reporting and breaking news.