Main focus of Wednesday, February 1, 2012

Reactions to the budget pact

The debt ceiling comes into effect when new borrowing exceeds 0.5 percent of GDP. (© dapd)

With the new fiscal compact 25 EU states will include a debt ceiling in their national legislation and accept automatic sanctions for deficit sinners. But the agreement is of little use without domestic reforms, write some commentators, while others feel the pact is completely superfluous.

24 Chasa - Bulgaria

Bulgaria has signed the fiscal pact for greater budget discipline. But to adhere to the new budget rules and to benefit from them on the long term the EU's poorest country must first implement drastic reforms, writes the daily 24 Chasa: "In signing the fiscal pact, Bulgaria has committed itself to a sound budget policy. But what about the commitment to introducing pressing reforms? The pension reform should have been implemented three years ago, there hasn't even been a proper debate over the healthcare reform and the administrative reform has been limited to closing down a few offices and institutes. Without reforms the European fiscal pact won't make us one bit more prosperous or competitive. It could serve those in government as a good basis for distinguishing themselves as genuine reformers. But first they must be clear that that's what they really want." (31/01/2012)

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Lietuvos rytas - Lithuania

In fact there's no need for the fiscal compact, the liberal daily Lietuvos rytas affirms: "Our politicians never stop repeating that Lithuania will adhere to the fiscal pact because it's the right thing for the country to do. ... Certainly, it would be unreasonable to deny that it is important to prevent excessive indebtedness. But it is difficult to say if Lithuania really needs a new intergovernmental treaty to that end. And if the treaty is adhered to one should remember the slogan that 'the devil is in the detail'. Last week warnings even came from the Ministry of Finance and the Ministry of the Economy that some of the agreement's provisions could be disadvantageous to Lithuania. Moreover, the final  wording of the treaty isn't even known yet." (01/02/2012)

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Mladá fronta Dnes - Czech Republic

The No of Czech Prime Minister Petr Nečas to the EU fiscal compact is paradoxical according to the liberal daily Mladá fronta Dnes, because the government is pursuing essentially the same goals as the agreement: "The spirit and words of the fiscal compact speak against Nečas' decision. The agreement deprives no one of their sovereignty; it simply introduces automatic sanctions for major budget deficits. This is precisely what we want. ... But Nečas must take into account the strong eurosceptic wing of the Civic Democrats (ODS), whose king and spokesman is President Václav Klaus. He knows how to exploit his powers to the max. ... Nečas knows that the advantages of the pact outweigh the disadvantages, but it will be difficult to convince his party colleagues of this. He doesn't even want to try. But he must if he intends to act responsibly here." (01/02/2012)

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Magyar Hírlap - Hungary

The Hungarian government's decision to endorse the EU fiscal compact was a sensible one, writes the right-wing conservative daily Magyar Hírlap: "For the average citizen the results in Brussels are difficult to comprehend. Until now the problem for Hungary, or more precisely its government, was that the EU was concerning itself with the independence of the media and central bank and even interfering with matters regarding the democratic legal system. Now on top of everything else we're supposed to draw up our budget according to EU stipulations. But the government has made a good decision. It has considered the interests of investors, the markets and the EU, which means its well on its way to returning to the European fold. Or more precisely, not just the European fold but also the European Union's framework of rules." (01/02/2012)

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