BELGIUM: EUROPEAN FINANCE OFFICIALS VOICE GUARDED OPTIMISM ABOUT LOOSING EU'S BUDGET DEFICIT RULES
Record ID:
647531
BELGIUM: EUROPEAN FINANCE OFFICIALS VOICE GUARDED OPTIMISM ABOUT LOOSING EU'S BUDGET DEFICIT RULES
- Title: BELGIUM: EUROPEAN FINANCE OFFICIALS VOICE GUARDED OPTIMISM ABOUT LOOSING EU'S BUDGET DEFICIT RULES
- Date: 20th March 2005
- Summary: (BN10) BRUSSELS, BELGIUM (MARCH 20, 2005) (REUTERS - ACCESS ALL) 1. SLV/LAS EUROPEAN COUNCIL BUILDING/EUROPEAN FLAG OUTSIDE THE EUROPEAN COUNCIL (2 SHOTS) 0.09 2. MCU (English) JOAQUIN ALMUNIA, COMMISSIONER FOR ECONIMIC AFFAIRS, SAYING: "I hope that in the today's discussion we will reach a lot of agreements, but I'm convinced that the final agreement will be reached by the European Council." 0.23 3. SV JEAN-CLAUDE JUNCKER ARRIVING 0.30 4. SLV CAMERAMEN FILMING 0.33 5. MCU (German) JEAN CLAUDE JUNCKER, TALKING ABOUT GERMANY REQUEST FOR SPECIFIC CONDITIONS BECAUSE OF REUNIFICATION COSTS SAYING: "I think it will be risky to do this explicitly because other countries from outside the euro zone can say they have similar circumstances. I have nothing against putting this theme on the table, because it is effectively a expenses/costs package Germany has to deal with." 1.06 6. SLV FINNISH DELEGATION ARRIVING 1.13 7. MCU (English) FINNISH FINANCE MINISTER KALLIOMAKI SAYING: "It would be a small miracle if we get a deal tonight." 1.25 8. SV DUTCH FINANCE MINISTER GERRIT ZALM STEPPING OUT OF CAR 1.34 9. MCU PHOTOGRAPHER TAKING PICTURES 1.36 10. MCU (English) DUTCH FINANCE MINISTER GERRIT ZALM SAYING: "We are going to discuss it and let's see if we can find a compromise which is nevertheless solid. The pact should have teeth." 1.50 11. SV GERMAN MINISTER OF FINANCE HANS EICHEL ARRIVING 2.03 12. MCU CAMERAMAN 2.06 13. MCU (German) GERMAN MINISTER OF FINANCE HANS EICHEL SAYING: "We are results-oriented but Europe should take very seriously the weak growth which is Germany's big problem. Of course the people don't want growth built on higher debts. That's not the issue here. But what is at stake here is how one can combine sustainable growth and a sustained consolidation of public finances." 2.40 14. SV (English) PRESIDENT OF EUROPEAN CENTRAL BANK JEAN-CLAUDE TRICHET SAYING: "I will only say what I said at the beginning of last week in the European parliament, what was the position of the ECB since the very beginning. I will participate here and I will listen to what is said now." 2.59 15. SV FRENCH FINANCE MINISTER ARRIVING 3.07 16. MCU (German) AUSTRIAN FINANCE MINISTER KARL-HEINZ GRASSE SAYING: I'm in favour for doing more for the Lisbon process, more growth, more jobs, I will do anything to avoid giving a licence for excessive deficits, than that would mean less growth and more unemployment. and this can not be our responsibility." 3.25 17. ZOOM OUT HANDSHAKING MINISTERS TO VARIOUS MINISTERS 3.32 18. SV JEAN CLAUDE TRICHET SHAKING HANDS WITH HANS EICHEL 3.43 19. PAN ON CAMERAS FILMING ROUND TABLE 3.50 20. MCU GRASSER TALKING TO TRICHET 3.53 21. SV FRENCH FINANCE MINISTER THIERRY BRETON ARRIVING 4.00 22. SV OF MEETING 4.04 23. MCU BRETON AND EICHEL DISCUSSING MATTERS 4.16 24. MCU TRICHET LOOKING INTO DOCUMENTS 4.19 25. SV JEAN CLAUDE JUNCKER LOOKING AT HIS PAPERS 4.21 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 4th April 2005 13:00
- Keywords:
- Location: BRUSSELS, BELGIUM
- Country: Belgium
- Reuters ID: LVADAI59G4PS2NO48EXWTSP74K7L
- Story Text: European finance officials voice guarded optimism
about loosening EU's budget deficit rules.
European finance officials voiced guarded optimism
on Sunday (March 20) about an outline deal to loosen the
EU's often-breached budget deficit rules but German demands
for special treatment could scupper an agreement.
Luxembourg Prime Minister Jean-Claude Juncker chaired
an emergency meeting of euro zone finance ministers. He
called the extraordinary Sunday session to try to break a
deadlock over let-out clauses in applying the rules, which
have been in disarray since Germany and France escaped
discipline for their high deficits in November 2003.
But a sceptical Finnish Finance Minister Antti
Kalliomaki, asked whether he expected a deal on Sunday,
told reporters: "It will take a small miracle."
The deficit rules were adopted at German insistence in
1997 to underpin the euro by preventing profligate spending
and heavy borrowing by one country undermining the EU's
single currency.
Berlin and Paris have breached them for the past three
years because of an economic slowdown and Germany may miss
the target again this year, so it is leading the charge for
greater flexibility to run bigger deficits.
"I very much hope and we will try hard to get unanimous
agreement today ... Germany is results-oriented," German
Finance Minister Hans Eichel said on arrival.
Ministers have agreed to keep the ceiling on public
deficits at 3 percent of gross domestic product, but
differences remain over what mitigating factors should be
taken into account when assessing why countries have
breached the limit and how long
they should be given to come back into line.
Berlin is demanding special consideration for both the
exceptional costs of German reunification and its big net
contribution to the EU budget.
Juncker sent ministers a new compromise proposal on
Friday that included both a vaguely worded clause allowing
countries to cite their own "relevant factors" to excuse an
excessive deficit, and the prospect of at least two years
and possibly longer to bring the shortfall back below 3
percent.
He denied that this amounted to watering down the pact,
which can theoretically lead to heavy fines for countries
that persistently fail to rein in overspending.
Among factors that could justify breaching the limit
under the Luxembourg draft were increasing development aid,
public investment, R&D spending, structural reforms notably
of pensions systems, and the vague "achieving European
policy goals".
It did not mention German unity costs, and Juncker
repeated in the magazine Der Spiegel that to make a special
case for Berlin would be dangerous and invite others to
seek leniency for their individual problems.
Deficit hawk Austria said the Luxembourg plan was not
acceptable in its current form, but the Netherlands, which
has often taken a hard line too, said it was a good basis
for an agreement and he was willing to make compromises for
a deal.
"Let's see if we can find a compromise that is
nevertheless solid. The pact should have teeth," Dutch
Finance Minister Gerrit Zalm told reporters.
Diplomats said Chancellor Gerhard Schroeder is
determined to avoid any risk that his government could face
EU budget disciplinary action in the run-up to a 2006
general election.
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