MNI BRIEF: Time Running Out For EU Fiscal Deal, Officials Warn

European officials warned on Tuesday that time was running out to agree reforms of the EU’s fiscal rules, as one source told MNI Germany was digging in its heels in against major changes to the Stability and Growth Pact.

“Solutions are not easy to reach but I see … progress and I don’t see entrenched confrontation between two different blocs,” Economy Commissioner Paolo Gentiloni told reporters as he entered talks among finance ministers. The mandate of the European Parliament, which would need time to discuss legislative reform proposals, ends in 15 months, he added.

Commission Vice President Valdis Dombrovskis said the Commission would engage with member states ahead of the March 14 ECOFIN meeting and should make a reform proposal by late March or first half of April.

But finance ministers underlined remaining disagreements, with one source saying Germany told the meeting that it would accept only minor changes to existing rules (See MNI: Sweden Tries To Push EU Fiscal Reform Back To Commission)

Slovenian Finance Minister Klemen Bostjancic said he would host a roundtable on the issue with other ministers, Eurogroup President Pascal Donohoe, Gentiloni, and European Stability Mechanism chief Pierre Gramegna in three weeks’ time.

“I really hope we can reach a compromise in the next few weeks and months,” Bostjancic said.