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'Euro Area Plus' to Start Talks on Closer Fiscal Union |
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Tuesday, 20 December 2011
The talks to draft an International Agreement on a Reinforced Economic Union will start Tuesday, December 20, in the working party of 17 euro zone states plus the other willing EU members, the Bulgarian Finance Ministry said Monday.
The draft proposes that EU Member States strengthen their budgetary discipline and to reinforce their economic policy coordination and governance as part of the measures to counter the effects of the debt crisis in Europe; it was agreed upon by the leaders of 23 out of the 27 EU member states at the last European Council summit, with the UK vetoing the EU-wide application of the initiative originally proposed by France and Germany.
It outlines a set of rules, in addition to and without prejudice to the obligations derived from Union Law, Bulgaria's Ministry of Finance points out.
The proposed rules envisage the annual structural deficit of the general government not to exceed a country-specific reference value, which ensures an adequate safety margin with respect to the 3 % reference value in the framework of the excessive deficit procedure.
It is envisaged that the proposed provisions should be introduced in national legislation of a constitutional or equivalent nature.
Any Contracting Party which considers that another Contracting Party has failed to comply with the rules on budgetary discipline may bring the matter before the Court of Justice of the European Union.
The judgment of the Court of Justice of the European Union shall be binding on the parties in the procedure, which shall take the necessary measures to comply with the judgment within a period to be decided by said Court, the Reinforced Economic Union draft agreement stipulates.
The Agreement is envisaged to be ratified by the Member States in accordance with their respective constitutional requirements.
The proposed document does not pertain to EU Member States', including Bulgaria's, relations with International Financial Institutions, the Finance Ministry in Sofia has stressed.
"Bulgaria confirms its commitment to the proposed in the Agreement measures for improving fiscal discipline in EU Member States. The Ministry of Finance reminds that with the Bulgarian Financial Stability Pact the Government supports the thus made proposals. Ceilings of 2% of GDP on the budget deficit and up to 40% of GDP on budget expenditure have already been provided for in the Organic Budget Law," the Bulgarian Finance Ministry stated. |
Tuesday, 20 December 2011
Novinite
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