3 November 2003, 15:07 ECB's Tumpel sees no changes in Stability Pact
VIENNA, Nov 3 - European Central Bank Executive Board Member Gertrude Tumpel-Gugerell said on Monday she did not expect eurozone countries to change the Stability Pact despite criticism by some that its deficit limits were too tight.
"I don't see that happening," Tumpel-Gugerell told Austrian state radio ORF in an interview.
Asked what it would mean for the ECB's work if the Stability Pact's rules for member countries were not enforced, she said:
"It would be an enormous difficulty, because we would have a common monetary policy for Europe but would lack a mechanism for coordinating fiscal policy, which has remained a national responsibility."
The Pact requires states to keep fiscal deficits below three percent of GDP and reach balanced budgets in the medium term.
France has drawn up a budget that forecasts a 2004 deficit of 3.6 percent of GDP and should, under the timetable laid down by the Stability Pact, be heading for fines.
But the European Commission, the guardian of the Pact, has given France an extra year to rein in its deficit given sluggish economic activity, as long as it makes more budget cuts in 2004.||
© 1999-2026 Forex EuroClub
All rights reserved