The decision by ECOFIN on November 25th to “hold in abeyance for the time being” the excessive deficit procedure against these countries has given rise to much talk about the status of the Pact.
Clearly the Governing Council is concerned about this situation, because of the impact such an action can have on the ECB’s core mandate to attain and maintain price stability, and it respects the Commission’s decision to seek legal clarity in this regard.