92002E1859

WRITTEN QUESTION E-1859/02

by Bart Staes (Verts/ALE) to the Commission

(28 June 2002)

Subject: European regions' responsibilities as regards compliance with the Stability Pact

The Stability Pact of December 1996 imposes strict budgetary discipline on the Member States. Some Member States find it hard to operate within such financial constraints, and this is certainly true of Member States' regions and federal states.

Does the Commission acknowledge this problem and will it urge Member States to take action against federal states and regions that systematically spend more than is permitted under Stability Pact rules?

Answer given by Mr Solbes Mira on behalf of the Commission

(12 August 2002)

The Commission acknowledges that the effective respect of the medium-term objective of budgetary positions of close to balance in surplus objective, to which the Stability and Growth Pact commits the Member States, depends on behaviour at all levels of government. Within the framework of multilateral surveillance set out by the EC Treaty and complemented by the Stability and Growth Pact, the Commission has recommended that national governments ensure strict budgetary implementation at all levels of government, where this was a significant issue. The Commission follows with interest developments in Member States aiming at coupling fiscal decentralisation with making sub-national levels of government responsible for the achievement of the overall budgetary objectives. However, national government remains responsible for ensuring the respect of Community law, and this includes the obligations deriving from the Stability and Growth Pact.