Akkoord Stabiliteitspact verwacht in maart (en)

EUOBSERVER / BRUSSELS - EU 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.

Speaking to journalists after marathon talks in Brussels last night, German finance minister Hans Eichel said, "I am confident that an agreement can be reached by March".

He added that finance ministers would prefer to thrash out a deal before their leaders take over the issue at a summit meeting on 22 March.

Luxembourg's Prime Minister Jean-Claude Juncker, who chairs the meetings, said, "On most points, there are agreements" and, although there are still areas of discord, "positions have come considerably closer together".

"There's no point giving the impression that it will be a clash of the Titans. We are not scrapping the pact, we are reforming it", he said.

Furthermore, after talks that went on until 2am on Wednesday morning, he announced an earlier starting time for the next meeting on 7 March. Ministers will meet at 5pm, rather than 7pm to give them more time to finalise the discussions.

"I don't want to spend the whole night with my euro zone colleagues until three in the morning and then turn up for the ECOFIN unshaven and rumpled, therefore the next meeting will start at five not seven, so we can get things out of the way and concentrate on the pact".

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.

"You will have to wait for the dust to settle", said one source.

The next meeting takes place on 7 and 8 March.

David versus Goliath

No-one was denying, however, that complex and controversial issues are still on the negotiating table. 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.

The debate centres around what factors should be taken into consideration when a country breaks the rules.

Diplomats said that a list of such criteria could be drawn up. Germany stresses that the costs of reunification should be taken into account, as well as its payments into the EU budget. France wants spending on research and development to be considered.

Airline fuel tax

There was no agreement either on the possibility of a tax on airline fuel to boost development, despite strong backing from France and Germany.

"With the help of such a tax, our energy, environment and development policy could be realised without overburdening national budgets", said German finance minister Hans Eichel.

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.