HANDELSBLATT EXCLUSIVE

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Berlin Slams European Commission over Fiscal Pact Leniency

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Germany is not amused. Picture source: Reuters

The German government has accused the European Commission of failing to hold member states accountable for violating the E.U. fiscal compact and thereby weakening the bloc’s budget rules, according to an internal government report obtained by Handelsblatt.

“The commission doesn’t have the will to go into direct conflict with the individual member states and therefore doesn’t prioritize the implementation of joint agreements,” the seven-page report said.

The fiscal compact, which has been signed by 25 E.U. member states, requires signatories to implement a debt break that limits budget deficits to 3 percent of gross domestic product.

 

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