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To: yard_man who wrote (179735)	7/14/2002 5:06:17 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 436258

The stability pact needs protection from the governments welt.de Column Of Theo Waigel The stability pact, agrees upon 1995 in Dublin, discharges 1997 in Brussels, had originally only one goal: It should prevent that a state of the monetary union hurts these criteria after reaching the Maastrichter conditions of stability and the participation in the monetary union unpunished again. So that however this danger in the process of an economic cycle does not develop only at all, a medium-term consolidation goal had to be aimed at, which had to be far more ambitious than simply only three per cent state deficit. An ambitious goal Federal Bank and board of experts would have been quite content at the beginning of the nineties with a per cent state deficit. But in the circle of the European Ministers of Finance a more ambitious goal was postulated. The principle of the lastingness was introduced to the European financial policy. Who considers the population trend, which long-term eligible for financingness of the social security systems analyzed and which generation contract does not want to destroy, must household reconciliation and surplus aim at. Thus gradual goals are specified: first lower deficits, then household reconciliation and afterwards household surplus. With it the next generations should not be loaded with the problems of earlier. The stability pact ordered the chance to countries with in former times high deficits to get the consolidation going more strongly than this would have been possible normally relating to domestic affairs. The stability pact should be a bulwark against the relating to financial policy schlendrian, which some European countries had put by a thoughtless deficit financing to the day. Today a Spanish commissioner defends this stability pact against attempts of Germany, France and Italy to take the stability goals back even put again. The European commission adheres to letter and spirit of the agreement, while the advice of the Ministers of Finance decides putrid compromises and in the parliament and convention about softening and new interpretations is loud thought. There is the small stability countries Finland, the Netherlands and Austria, which convert consistently their stability goals and against a softening of the goals keep themselves. The new Netherlands government parties agreed upon a surplus goal in the total budget of a per cent even during the period of a legislative period. Also the Scandinavian countries gain already surplus or them will shortly reach. The large national economies Germany, France and Italy explain fundamental readiness to reach to at the latest 2004 a household reconciliation wind themselves however then with the implementation, raise reservations and look for apologies. Still 1998 was to Germany, France and Italy clearly below three per cent with the state deficit. While the smaller countries advanced the consolidation consistently, the three largest national economies did not reduce the state deficit in the last years any longer. In Germany we are appropriate for 2,1 per cent this year with approximately 2.8 per cent, opposite in the year 1998. In order to almost achieve the goal household reconciliation or household reconciliation, Germany growth successes needs and must shorten its expenditures further. But who wants to shrink more to do for occupation-effective measures - and that is urgently necessary -, may not the household not too much. Dismantling of subsidies The necessary measures in the tax law for the middle class must be financed by dismantling by tax subsidies and privileges in other place. Higher investments in the household, particularly to favour of the young Lands of the Federal Republic, must be saved and shifted in other places in the household. Above all "free reforms so mentioned" must be decided and implemented without taboos. Proven ones and good practices in other European countries must come also with us on the test stand and realize as soon as possible. A uniform European financial market leads to efficiency and growth gains. Consolidation and growth cause each other. A symmetrical financial policy reduces the deficits, lowers the tax and delivery ratio, reduces the state portion and increases growth. The stability pact infrage to place would be anyhow a completely wrong way.