The South fight back "Pragmatic" in penalties for unruly countries requesting G. Papakonstantinou

RES

George Papakonstantinou talks with his French counterpart Christine Lagarde

Brussels

Previous article: Hard proposals for the "offenders" puts Germany in Brussels (05/20/2010) The need for "pragmatic" in the subject of sanctions imposed on countries that violate the Stability pointed G. Papakonstantinou, categorically rejected the German proposal. Speaking to reporters after the first meeting of the Working Group to address the crisis in Europe, the finance minister supported the need to tighten up the Stability and Growth Pact and called for the ex ante evaluation of government budgets before approval by national parliaments . As regards the issue of economic and political sanctions imposed on countries that systematically violate the Stability Pact, an issue raised during the meeting, C. Papaconstantinou said that the issue should be dealt with "pragmatic" . He stressed that even in this discussion, Greece and other countries differed from some "German" ideas such as providing a controlled bankruptcy of the member states of the eurozone. "The logic of having an exit door is a reasonable punishment that would further destabilize an already fragile market and would be a direction that would give a wrong signal to the markets by encouraging speculation" he said. During the meeting, C. Papaconstantinou said that Greece was in generally supported the idea Eurobond issue in the overall proposal tabled by some countries to convert a portion of the debts of euro area Member States a common European debt. G. Papakonstantinou was also implied in favor of legislative initiatives by Germany to limit speculative games against government securities in the territory. At the hearing Mr Papaconstantinou reported that Greece had raised the issue of quality of public finances to be considered the reasons for increased losses (eg if due to consumer spending and investment growth) and not to limit the debate soaring deficits. He added that Greece has raised the issue of regulating financial markets, stressing the need "to move faster. Finally, Greece has expressed reservations about the possibility of open debate now to change the Treaty which such estimates would confuse, rather than solve problems. Newsroom DOL with information from ANA-MPA