Stability Pact reform looms

Ann Cahill

Mr Junker, who as Luxembourg prime minister, took over the role of EU President this month, indicated a measure of flexibility will be introduced to the pact. The set of rules have been stretched to breaking by France and Germany in particular breaching its 3% budget deficit limit several times.

A number of finance ministers have been pushing for a more flexible interpretation of the rules, especially regarding budget deficits.