Is the Commission proposing suspension of the Stability and Growth Pact? If not, why not?
The Recovery Plan reiterates the importance of staying within the Stability and Growth Pact, which is part of the solution, not part of the problem. A fiscal stimulus is essential, and can make a big contribution to turning the situation round and putting Europe back on the growth path. The Stability and Growth Pact provides a common and credible framework for policy coordination. Member States putting in place counter-cyclical measures will be invited to submit an updated Stability or Convergence Programme by the end of December 2008. This will spell out exactly how the Member State in question plans to reverse the fiscal deterioration and to resume progress towards it medium term objective. The Commission will assess both the budgetary impulse measures and the updated programmes. To anchor budget deficits and debt developments and ensure that a medium-term perspective is taken into account, the Commission will always prepare a report according to Article 104(3) of the Treaty if the 3
