Date of release : 22-03-2005

Policy area : General Affairs and External Relations

Event : European Council

At the end of the first working session of the European Council, Luxembourg Prime Minister and President of the European Council, Jean-Claude Juncker, spoke on the agreement reached on the Stability Pact:

"We have engaged in a debate on the conclusions suggested by Presidencyon on the Stability Pact. These conclusions of the Presidency were immediately accepted after a brief exchange of views.

As a result, the reform of the Stability and Growth Pact has been adopted, following the efforts of the Council of the Ministers of Finance on 20 March.

The preventive dimension of the Pact will allow for an economically more coherent interpretation throughout the entire economic cycle. It is not an invitation to Member States to practice policies of deficit and public debt. It maintains the principle that exceeding the reference value of 3% is considered excessive if the excess is not situated near the 3% reference value. You may consult a declaration by the three Benelux Prime Ministers on how to interpret the agreement of the Ministers of Finance.

The agreement highlights the necessity for the European Institutions to cooperate in the most intense fashion possible when it comes to achieving great goals in Europe. If we forget the solidarity among Member States, we will not make headway, but only small steps. As for the reform of the Pact, cooperation between the Commission and the Council was exemplary and remarkable in every respect."