The European Parliament adopted a report and recommendation by Mr Efthymios
CHRISTODOULOU (PPE, GR) approving, subject to several amendments, the two proposals that
constitute the Stability and Growth Pact, a key element in ensuring budgetary stability during the
third phase of EMU.
Parliament, consulted again on the proposal for a regulation defining the procedure applicable to
Member States with an excessive budget deficit, calls for the interest on deposits and the fines
imposed on Member States with an excessive budget deficit to be entered in the Union's general
budget and not distributed among participating Member States without an excessive deficit, as the
Council has proposed.
Parliament also calls for the Council periodically to examine (on the basis of a report from the
Commission and opinions delivered by the European Central Bank and after Parliament has been
consulted) and revise the regulation in the light of experience gained. It hopes further that an
additional regulation on the methodology and notification of data concerning real changes in GDP
will be drawn up for 1 January 1999.
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