Growth
EU official threatens court action over pact
EU Economic Affairs Commissioner Pedro Solbes said on Wednesday 26 November, according to AFP, that the (European) Commission's judicial service is studying the question of whether the ECOFIN ministers' decision this week to effectively let Germany and…
Euro Parliament: More emphasis on growth for Pact
Press release on the Stability and Growth Pact by the Chair of the Committee on Economic and Monetary Affairs of the European Parliament, Christa Randzio-Plath MEP, 27 November. "A constructive debate on Stability and Growth Pact is needed: a political…
ECB's Padoa-Schioppa sees no threat to growth pact
ECB board member Tommaso Padoa-Schioppa has said that despite the changes to the stability and growth pact, its long-term credibility is not under threat, Reuters reports. He said he did not share speculation the decision could spell the end for the…
Greek central bank warns on public debt
Nicholas Garganas, Governor of the Bank of Greece, has called for a strict adherence to the stability and growth pact, according to a report by Kathimerini. Garganas told Parliament that uncontrolled deficits will have serious consequences on interest…
ECB statement on ECOFIN budget conclusions
Statement of the European Central Bank Governing Council on the ECOFIN Council conclusions regarding the correction of excessive deficits in France and Germany, 25 November. The ECB's press release warns: "The Conclusions adopted by the ECOFIN Council…
France and Italy lead charge for EU pact change
French Finance Minister Francis Mer said Wednesday the EU should consider revising the stability and growth pact in 2005, Reuters said. While Italian Treasury undersecretary Gianluigi Magri commented "Pact 1 is finished with. We need to change the…
EU bends budget rules for Germany, France
A proposal to suspend the sanctions mechanism of the stability and growth pact for France and Germany was agreed on Tuesday 25 November by eurozone finance ministers, acording to Reuters. A declaration by the Ecofin council, meeting in Brussels, agreed…
ECB's Trichet:: unsound budgets fuel inflation
The ECB President said on Thursday 20 November that "non-disciplined" fiscal policies would undermine confidence and thus reduce potential output and longer-term growth in the eurozone, according to a report by AFP. "The arguments in favour of the…
Portugal may join budget deficit breakers
Portugal's central bank has announced that its deficit will exceed the EU's 3 per cent limit, under the growth and stability pact, according to a report by EU Politix. The bank said it would probably run a deficit in excess of 4 per cent, due to the…
Malta central bank cuts growth forecast for 2003
The central bank of Malta has revised its growth forecast for the country to between 1 and 1.3 percent for 2003, according to the Times of Malta. In its annual report published in April it had previously forecast real GDP growth of 3.1 - 3.7 percent.
Ireland to consider stability pact reform
Mary Harney, the leader of Ireland's Progressive Democrat Party and Minister for Trade, has said that the EU's stability and growth pact will be considered in detail when Ireland holds the EU Presidency next year, according to the Irish Independent. She…
ECB's Issing: Rule breaking undermines euro
Otmar Issing, the ECB's chief economist, has said in an interview reported by AFP that the stability and growth pact is an important institutional part of monetary union and it is a major concern if it is put into doubt. Asked whether the ECB could…
Bank of England raises growth forecast
Mervyn King told the Bank of England's quarterly inflation report press conference on Wednesday 12 November that "There is a risk that heavily-indebted households will be badly affected by changes in economic circumstances or interest rates", Reuters…
Duisenberg sees danger EU stability pact will fail
Wim Duisenberg, whose term as president of the ECB finished on Friday 31 October, , said in a TV interview with ChannelNewsAsia that "The danger is certainly there" that the EU's stability and growth pact could fail. He warned that should this happen it…
Berlusconi calls for easing of the Stability Pact
Italian Prime Minister Silvio Berlusconi has, according to the EU Observer, said of the EU's Stability and Growth pact that "The 3 percent should not be taken as an absolute value beyond discussion and might be adjusted down by one or two percentage…
Greenspan to address Cato's Monetary Conference
Federal Reserve Chairman Alan Greenspan is scheduled to participate in the Cato Institute's 21st Annual Monetary Conference, "The Future of the Euro," at The Renaissance Hotel in Washington, D.C., on Nov. 20. Topics on the agenda include the impact of…
ECB hits out at France and Germany
The European Central Bank called for "complete compliance" with the EU's stability and growth pact in its monthly report released on Thursday 9 October, according to Expatica. The ECB said the pact was vital to success of the single European currency,…
Germany's Eichel says European economy improving
German finance minister Hans Eichel has said Europe needs stability and growth, according to AFX Europe. Bank of France governor Jean-Claude Trichet said at the meeting of French and German finance ministers and central bank governors that the ECB puts…
IMF's Rogoff urges EU stability pact reform
IMF chief economist Kenneth Rogoff has said that the EU's stability and growth pact needs to be implemented differently in the future, says AFX Asia. He also said he would not be against the European Central Bank cutting interest rates again now.
IMF lowers its growth forecast for euro zone
The IMF cut its growth forecast to 0.5 percent this year from an April forecast of 1.1 per cent, according to a report by Bloomberg. The report also said while the euro's exchange rate has "stabilised", the US fiscal and current account deficits, as well…
Wellink: EU 'budget sinners' need sanctions
In an interview to be published, Dutch central bank chief Nout Wellink said sanctions could be imposed against countries whose public deficits exceed agreed limits under the Stability and Growth Pact, according to AFP. "Penalties are part of the system…
European central banks call for respect on Pact
Central bankers from Poland, Hungary and the Czech Republic have called on euro-zone countries to respect the stability and growth pact fearing that growing demands for flexibility could undermine their own countries' efforts to join the euro, reports…
EU needs a more 'intelligent' pact - Pascal Lamy
Speaking during a visit to China EU Trade Commissioner Pascal Lamy said the EU's Stability and Growth Pact needs to be "modernised and whipped into shape" and needs to be a more "intelligent" pact, according to EU Observer.
Snow says U.S. economic growth accelerating
US Treasury Secretary John Snow said on Tuesday 22 July that we are seeing good signs that the US economy is beginning to take off, Reuters reports. Snow said the pace of expansion should pick up substantially in the second half of this year and during…