Negotiations for the reform of the Stability and Growth Pact have been resumed in recent days. The Pact was signed by the governments of member states to give stability to the single currency, control inflation and national public accounts. The issue is being examined by the economic and financial ministers (ECOFIN) and by the Commission’s experts. Various points of the Pact are being negotiated: the reduction of public debt (the limit established is 60% of gross domestic product, but several countries have exceeded the permitted threshold); the so-called “exceptional circumstances”, i.e. the phases of slowdown of the economy in which the exceeding of the 3% threshold of national deficit, as a ratio of GDP, does not automatically trigger the “excessive deficit” procedure; and the taking into account, in establishing the annual deficit/GDP ratio, of structural investments and investments in research and development. The analysis of the competent ministers could continue up till their meeting on 8 March, in such a way as to be able to submit the new text of the Pact to the European Council on 22-23 March.
