Geen hervorming Stabiliteitspact tijdens Iers voorzitterschap (en)

EUOBSERVER / BRUSSELS - The in-coming EU Presidency, Ireland, has indicated that it is not likely to reform the battered euro rules - known as the Stability and Growth Pact.

Introducing the Presidency, which will begin on 1 January, Irish Foreign Minister Brian Cowen said: "In our views, the rules contain an inherent flexibility and it's appropriate that this flexibility be applied with common sense and consistency".

He said that the rules had been applied appropriately to Germany and France.

His comments follow moves by France and Germany to suspend the Pact last month so they would not get sanctioned.

Both countries argued that they were trying to adhere to the rules - which limits budget deficit to below 3% of GDP - so they should not be punished, other countries such as Austria and the Netherlands were furious.

Commission was humiliated

The European Commission, which has the job of overseeing the euro rules, was humiliated in the process.

Mr Cowen said that EU finance ministers, who took the decision to suspend the Pact, retained the possibility to reactivate the moves if they deemed it appropriate at a later date.

He also insisted that the breakdown over the euro rules should not be used to characterise that the European Union does not work.

Ireland's EU presidency runs until the end of June. It will be succeeded by the Netherlands, a country which wants the Pact applied to the letter and reacted furiously when Germany and France bent the rules last month.