EC expected to take finance ministers to court

The EC is expected to decide tomorrow to take finance ministers to court for letting Germany and France off the hook for violating euro budget rules.

Economic affairs commissioner Pedro Solbes’ confidence level was “quite satisfactory” as he sought the backing of the other 19 commissioners today, said spokesman Reijo Kemppinen.

However, Kemppinen would not rule out resorting to a vote instead of the Commission’s usual consensus decision-making, with some commissioners signalling continued opposition.

France and Germany, which account for roughly half of the euro-zone’s economic output, used their muscle at the November meeting of EU finance ministers to block the Commission’s effort to punish them for failing to rein in excessive budget deficits.

Instead, the rules were effectively suspended and Berlin and Paris given an extra year to get their budgets in line.

Although Commission lawyers have recommended going to court, some in Brussels are wary about further aggravating relations with the euro-zone’s two heavyweights.

Solbes acknowledged last week that while a court decision would be “useful” in clearing up procedural questions, political considerations were important as well. Another defeat would further weaken the Commission’s perceived authority as guardian of the euro rules.

One of two German commissioners, Guenter Verheugen, said he thought a lawsuit was unavoidable even though he was opposed.

“I believe it’s an unnecessary aggravation of the situation within the European Union,” he said. “I would prefer to go the way of discussion.”

If it goes to the European Court of Justice, the Commission would probably use an accelerated procedure that brings a ruling in three to six months, Kemppinen said.

France and Germany each hold two seats on the Commission, along with other larger EU nations: Spain, Britain and Italy. The 10 other nations have one each.

On taking office, commissioners are supposed to set aside national interests and work for the wider European good.