MNI BRIEF: Spain To Make New Proposal In EU Fiscal Rules Talks

The Spanish presidency of the European Union will draft another paper outlining a potential compromise to seek a deal over new fiscal rules after talks between national finance ministry officials failed to bridge sticking points with Germany continuing to call for stricter debt-reduction requirements, an official told MNI.

“A new Spanish paper is being drafted for another EFC (finance officials’) meeting,” a source said, referring to talks due on Monday. Spain is trying to clinch a deal on new Stability and Growth Pact rules this year.

The same official said that there had been “no real movement” by Germany away from its demand for a minimum debt-reduction safeguard of 1% per year in the debt-to-GDP ratios of high-debt states. (See MNI:Fresh Italian Demands Make EU Fiscal Deal Harder-Officials)

“Their expectations on safeguards have not been met,” the official said, adding that new new paper would try to address Germany’s concerns. “We are trying to be imaginative.”

The Spanish official stressed that progress is being made and that the new paper would reflect that.