Good luck with all that, Euroweenies.Progress towards euro rule reform stallsNo agreement was reached over reforming the Stability and Growth pact at a meeting of finance ministers that dragged on late into Thursday (17 February) morning. However, ministers were still relatively upbeat, with Luxembourg's Prime Minister Jean-Claude Juncker claiming "great progress"... Holding up progress is the thorny problem of how to punish member states that breach the rules... But, after damaging clashes between the Commission, which initiates this procedure, and big member states – Germany and France – which have fallen foul of this rule, ministers are now agreed that more flexibility should be introduced into the Pact... Germany also wants net contributions to the EU budget to be taken into account, along with the costs it has undergone during reunification... Finally, the draft conclusions of the meeting will call for higher statistical standards after Greece was found to have misrepresented the extent of its budgetary difficulties.
by Richard Carter
EU Observer
Feb 16 2005Ministers aim for euro rule deal in MarchEU finance ministers on Thursday (17 February) failed to reach consensus on how best to reform the Stability and Growth Pact but have expressed confidence that a deal can still be brokered next month... And in a sign that some progress had been made, EU diplomats said that the reform proposals would not be returned to the experts on the Economic and Financial Committee (EFC) but kept at political level. Mr Juncker will present new compromises next month... French finance minister Herve Gaymard said there were about "10 subjects that are open". The broad disagreement is between France and Germany, who want much more flexibility to be injected into the rules and some smaller countries - led by Austria - who want to keep a tight fiscal framework... However, there was unanimous agreement on the appointment of Lorenzo Bini-Smaghi to replace fellow Italian Tommaso Padoa-Schippoa on the powerful executive board of the European Central Bank. There were no other candidates.
by Richard Carter
EU Observer
Feb 18 2005
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the EU is doomed.
What a great idea, fine a country for going into a deficit. I'm sure that will work. *rolls eyes* That's almost as good an idea of extorting money from the successful countries to fight global warming. What the hell is wrong over their in never never land.
Let the fun begin
I really do not see how the European Union can survive as a entity. There are not enough checks and balances in the system. It is not really a country but a club that tries to interfere in the governments of it's members. The weaker countries will chafe under the bumbling micro management of their internal affairs by the stronger nations.
> ... the Greek government must produce a report in
> March on how it intends to reduce its deficit.
This has always been the biggest threat to the Euro,
that one or two member nations would inflate the
money supply to their benefit, and devalue the Euro
at the expense of all the other countries.
And the control mechanism looks very much like
cat herding. Would we expect anything else from
this loose association of weasels and whiners?
I would guess that Greece would rather quit the EU than pay a half-billion dollar fine.
What about the multiple violations of France and Germany over the past couple of years? Oh, I forgot, they are the two bullies who get away with everything. All others have to pay.
France and Germany were given passes for violating this pact
Ministers clinch deal on euro rules reformThe main sticking point during negotiations was a debate over what factors should be considered when deciding whether to punish a country in breach of the rules – as France and Germany have been for three consecutive years... Smaller member states felt that there were too many exceptions on the list and bigger states – notably France and Germany – felt that there were too few. This row was solved by the removal of the list from the proposal... The Pact has also been softened in terms of the amount of time a member state is allowed to correct its deficit problem... The only finance minister not entirely happy was Austria’s Karl-Heinz Grasser, who has consistently argued that the Pact should not be loosened.
by Richard Carter
21.03.2005
Brussels to pursue Greece and Hungary for breaking euro rules
EUobserver | Dec 26 2004 | Richard Carter
Posted on 12/25/2004 4:48:26 PM PST by SunkenCiv
http://www.freerepublic.com/focus/news/1308437/posts
CIA - The World Factbook -- France
last updated on 10 February, 2005
http://www.cia.gov/cia/publications/factbook/geos/fr.html
"The current government has lowered income taxes and introduced measures to boost employment. The government is focusing on the problems of the high cost of labor and labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The government is also pushing for pension reforms and simplification of administrative procedures. The tax burden remains one of the highest in Europe (43.8% of GDP in 2003). The current economic slowdown and inflexible budget items have pushed the 2003 deficit to 4% of GDP, above the EU's 3% debt limit. Business investment remains listless because of low rates of capital utilization, sluggish demand, high debt, and the steep cost of capital."
Business blamed for lack of growth
18.04.2005 - 18:13 CET | By Meghan Sapp
http://www.euobserver.com/?aid=18876&print=1