Sunday 25 March 2018

Countries breaching Stability Pact 'must be penalised'

German Chancellor Angela Merkel. Photo: Bloomberg News
German Chancellor Angela Merkel. Photo: Bloomberg News
Thomas Molloy

Thomas Molloy

GERMAN Chancellor Angela Merkel said yesterday she wanted to change the European Union's treaty to include a suspension of voting rights for countries that breach the group's Stability and Growth Pact.

Germany's leader has joined a growing chorus of voices in her country that wants to punish countries such as Ireland that are breaching the eurozone's Stability Pact to avoid a repeat of the eurozone debt crisis.

Speaking in Berlin, Mrs Merkel also reiterated that Germany would not agree to an extension of eurozone economic safety measures.

The comments came as EU finance ministers meet on Monday to look at ways to toughen debt and deficit rules in talks aimed at regaining confidence in the eurozone.

Sources said that a difficult discussion was likely over the details of the draft proposals.

For example, the tougher rules do not include the suspension of EU funds to eurozone countries that break them, as is sought by Germany.

Irish Independent

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