19.12.2011

Tomorrow a discussion on the draft of an International Agreement on a Reinforced Economic Union will start within the Eurogroup working party.

The draft proposes the EU Member States to strengthen their budgetary discipline and to reinforce their economic policy coordination and governance. The draft proposes a set of rules, in addition to and without prejudice to the obligations derived from Union Law.

The proposed rules envisage the annual structural deficit of the general government not to exceed a country-specific reference value, which ensures an adequate safety margin with respect to the 3 % reference value in the framework of the excessive deficit procedure.

It is envisaged that the proposed provisions should be introduced in national legislation of a constitutional or equivalent nature.

Any Contracting Party which considers that another Contracting Party has failed to comply with the rules on budgetary discipline may bring the matter before the Court of Justice of the European Union. The judgment of the Court of Justice of the European Union shall be binding on the parties in the procedure, which shall take the necessary measures to comply with the judgment within a period to be decided by said Court.

The Agreement is envisaged to be ratified by the Member States in accordance with their respective constitutional requirements.

The proposed document does not pertain to EU Member States', including Bulgaria's, relations with International Financial Institutions.

Our country confirms its commitment to the proposed in the Agreement measures for improving fiscal discipline in EU Member States.

The Ministry of Finance reminds that with the Bulgarian Financial Stability Pact the Government supports the thus made proposals. Ceilings of 2% of GDP on the budget deficit and up to 40% of GDP on budget expenditure have already been provided for in the Organic Budget Law.