The president of the European Central Bank (ECB), Mr Jean-Claude Trichet, has told EU finance ministers that the ECB opposes proposals to ease the Stability and Growth Pact writes Denis Staunton in Scheveningen.
Mr Trichet said that, although some of the European Commission's reform proposals were welcome, the ECB could not support a broadening of the conditions under which countries could breach the budget deficit limit of 3 per cent of GDP or granting countries more time to reduce their deficits.
"Precisely those proposals would call for a change in the regulations and that is not advisable," he said.
The ECB president sought to play down his disagreement with the Commission and acknowledged that it was for the finance ministers to make the final decision on any reform of the pact. He welcomed a statement by the finance ministers that "the Treaty should not be changed and that changes to the regulations should be minimised, if necessary at all".
Mr Trichet welcomed the appointment of Luxembourg's prime minister, Mr Jean-Claude Juncker, as president of the Eurogroup of euro-zone finance ministers for the next two years. Mr Trichet made clear, however, that he regarded the title of "Mr Euro" as his alone.
"I am the president of the ECB. The ECB is responsible for the euro. Mr Juncker is responsible for the Eurogroup. As far as the currency is concerned, I am actually Mr Euro," he said.
For his part, Mr Juncker said he would use his new position to encourage finance ministers to co-ordinate their economic policies more closely and to consult one another before drawing up national budgets.
"It's not normal that various countries do not know enough or anything about each other's budgets. We renationalise ourselves in a ridiculous fashion as soon as we start planning our budgets," he said.
Mr Juncker, who also serves as his country's finance minister, said that the crisis last November, when the stability pact was suspended in the case of France and Germany, had concentrated ministers' minds.
"The ministers became aware in November 2003 that something was not working. Our underperformance in November has enabled us to pull ourselves together," he said.
Mr Juncker said he expected no change in the relationship between the Eurogroup and the ECB and reassured finance ministers that he would not interfere in their domestic policies - at least, not too much. "One shouldn't imagine the president of the Eurogroup will roam across Europe with big boots, telling each and every one what they have to do. There is such a thing as the telephone," he said.
