MEPs and diplomats admit that the chances are slipping away of agreeing the ‘six-pack’ of EU economic governance rules before the end of Hungary’s presidency of the EU’s Council of Ministers.

An earlier plan to reach a deal in advance of next week’s (6-9 June) European Parliament’s plenary in Strasbourg has already been scrapped, said Corinne Wortmann-Kool, a Dutch centre-right MEP involved in the negotiations. She described the member states’ position as “still unacceptable” on several points, but she remains hopeful that “a crucial week of negotiations” will allow agreement in time for the Parliament’s 22-23 June mini-plenary session in Brussels. A Hungarian official said that the presidency aimed to have a deal ahead of a 20 June meeting of finance ministers.

One of the issues at the heart of the divisions is how far the European Commission should enjoy a strengthened role in enforcing economic governance rules: MEPs are in favour, member states are against. Similarly, MEPs want sanctions to be applied automatically when member states exceed the limits on budget deficit and debt, against member states’ resistance. MEPs and Hungarian negotiators are at odds over the ‘economic dialogues’ envisaged by the proposals, with MEPs pushing for the right to ask ministers to appear before them when countries infringe the rules.

Separate dialogues

Hungary proposed on Monday (30 May) that MEPs should separate out the ‘economic dialogue’ discussion to speed up the rest of the negotiations. Presidency officials are keen to get agreement on issues linked directly to the European semester so that the Commission’s reviews of national budgetary plans are not unduly delayed.

Click Here: cheap INTERNATIONAL jersey

A diplomat said that pressure was mounting for an early deal, amid increased market tensions over Greece and the need to implement tougher governance rules to enforce the stability pact.

“The situation is very serious,” said the diplomat, accusing some political groups of “irresponsibility” in seeking delay – a clear reference to the Socialists and Democrats group, which continues to argue for a slower legislative procedure. Centre-left MEPs, backed by the Greens and the European United Left/ Nordic Green Left, want further debate because a large minority of MEPs are anxious for the inclusion of a reference to spending to encourage economic growth. A discussion on the progress in the talks is scheduled for Wednesday (8 June), according to Parliament officials.