STRASBOURG - The European Union's Luxembourg presidency said Wednesday that a "serious reform" of the EU's tattered fiscal rule book is needed if a drive to relaunch Europe's competitiveness is to succeed.
"A successful relaunch of the Lisbon strategy without being able to agree on a serious reform of the Stablity and Growth Pact is a delusion," said deputy Luxembourg foreign minister Nicolas Schmit said.
He was referring to the EU''s so-called Lisbon strategy, launched five years ago to boost EU competitiveness, but being relaunched to revive still-flagging growth after a reevaluation of its targets.
Schmit was speaking a day after EU finance ministers failed to agree during marathon talks on a reform of the much-maligned Stability and Growth Pact, which sets rules on deficits for eurozone countries.
The EU is battling to strike a deal ahead of a March 22-23 summit at which reforming the stability pact and relaunching the Lisbon agenda are set to be the main topics.
After Tuesday's talks broke down, Luxembourg Prime Minister Jean-Claude Juncker warned that the EU might might have to leave the pact unchanged.
Schmit said: "We do not want a society at different speeds, we want everyone to take part in growth (and) economic development. ... Uncontrolled deficits are not a solution".
03/09/2005 12:41 GMT