EN Official Journal of the European Union CE 84/520

(2004/C 84 E/0596)

WRITTEN QUESTION E-4071/03

by José Ribeiro e Castro (UEN) to the Commission

(14 January 2004)

Subject: The Growth and Stability Pact again

After the public outcry caused by the Ecofin Council's deplorable decision concerning the repeated violation of the Growth and Stability Pact by France and Germany the echoes of which were heard in the European Parliament's debate, there is still great curiosity and some puzzlement about the Commission's real thoughts on the matter.

On the one hand, there has been frequent mention of the statements made by the President, Romano Prodi, who said the GSP was ‘stupid’ during an interview he gave to ‘Le Monde’, and of the polemic aroused by these statements.

On the other hand, we do not know whether or not the Commission will take the matter to the Court. First of all, soon after Ecofin's decision and with reference to the views of President Prodi and Commissioner Solbes, there were reports that the Commission, taking forceful and firm action, would do so. Later on it was reported that there was strong pressure against this, particularly from Germany and Austria, and since then there has been no news.

Can the Commission therefore say:

— whether the feelings openly expressed to a French newspaper regarding the ‘stupidity’ of the GSP in any way contributed to this serious lack of respect on the part of France and Germany, the countries of the ‘Franco-German axis’;

— whether or not it intends to refer their disregard and Ecofin's controversial decision to the Court, whether the Commission has been under any pressure not to do so and, if so, from which Member States the pressure came;

— whether it does not consider that decisions such as that taken by Ecofin open the way for future infringements of the rules of the GSP, and that if they do and nothing is done about it, whether such infringements will be ‘legitimised’;

— whether it does not also consider that this kind of attitude points not to a ‘two-speed’ Europe but rather a ‘two-level’ Europe — a Europe of big and small countries, and that incidents such as this place the European Union in a critical situation of total disorder?

Answer given by Mr Solbes Mira on behalf of the Commission

(18 February 2004)

On 13 January 2004, the Commission adopted a three-pronged strategy to clarify and improve economic policy coordination and surveillance following the 25 November 2003 Ecofin Council conclusions (1).

As a first strand of this strategy, the Commission will continue the conduct of economic and budgetary surveillance for all Member States in the framework of the EC Treaty and the Stability and Growth Pact (SGP). It will continue to monitor developments for Member States in excessive deficit and base its recommendations on sound economic analysis and the principle of equal treatment.

As a second strand, the Commission, based on the experience of the five first years of the Economic and Monetary Union (EMU), will make new proposals for the strengthening of economic governance in the future. Improvements in the implementation of the Stability and Growth Pact will form part of this initiative.

Finally, consistent with its role as the guardian of the Treaties, the Commission will seek to establish legal clarity and predictability regarding EMU related provisions of the EC Treaty. The Council adopted non-binding conclusions instead of taking a decision required by the law and the Commission has, therefore, decided to submit the Council conclusions to the scrutiny of the European Court of Justice.

(1) Press release IP/04/35.