Fiscal Measures Now!

01. 02. 2012

Fiscal Measures Now!


The agreement of all EU members bar the UK and Czech Republic represents an "irreversible step of the eurozone towards a fiscal union", Pahor told reporters.

 

The main feature of the agreement is the golden fiscal rule stipulating that budgets of the EU members have to be "balanced or in surplus". This means that structural deficit at the annual level must not exceed 0.5% of gross domestic product (GDP). It may be a surprise to some that the agreement came so fast, but the debt crisis forced the EU to take a turn more quickly, Pahor said. "Europe is twisting very quickly and we must not hesitate at home if we want to be an active part of this change." "We are happy with this treaty," he said, adding that the document brought a great responsibility. But it also brings instruments which will in the long-term contribute not only to sustainable public finances, but also to growth and new jobs, Pahor added.

 

 

Slovenia was highlighted at the summit as an example of best practice in employment of the youth, the PM said, adding that this however did not mean that unemployment of the youth was not a problem in Slovenia. Asked whether the EU was worried that the referendum legislation in Slovenia could slow down decision-making, Pahor said that this topic had not been discussed, but added that some of the EU leaders had told him that Slovenia should step up and not lag behind. He believes that 2012 will be a "breaking point in European politics in many aspects" and that political tensions in the EU are increasing.

 

"If these political tensions either within individual states or among them become too big and Europe fails to absorb them, this would be a huge blow to the European idea and a huge blow to the future of Slovenia," Pahor warned. Looking from Slovenia's perspective, Pahor is a moderate optimist. "We have the opportunity. It is up to us whether we will seize it or not. This is not a matter of the new government, but all of us who work in politics." He believes that it is impossible to keep the European idea alive in the 21st century without a deeper political union and that a discussion about this is needed in Slovenia. Pahor expects that the decisions regarding the fiscal treaty and changes to the European Stability Mechanism (ESM) will be confirmed in Slovenia, given the recent agreement on the golden fiscal rule reached by parliamentary parties.

 

SOURCE: The Slovenia Times

 

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