The euro fell to an eight-month low after the Dutch referendum vote as the Commission renewed its call on member states to work within the revised stability pact’s rules to improve the quality and sustainability of their public finances.
The euro’s fall has prompted speculation that European Monetary Union could break apart as a result of the vote. The head of the Dutch Central Bank, Nout Wellink told the BBC that the break-up scenario was “nonsense”.
An unpublished report by researchers at the German Bundestag [lower house of parliament] and obtained by the Financial Times says that member states are entitled to leave the eurozone in case of serious breaches of the Maastricht Treaty by other members once all conflict-resolution procedures available under EU law have been exhausted.
The Dutch vote came on the same day that the Commission published its annual report on the state of public finances in the EU for 2005.
Economic and Monetary Affairs Commissioner Joaquín Almunia said he believed the reform of the Stability and Growth Pact had been a success but that “its credibility depends on member states’ ability to work within the rules to improve the quality and sustainability of their public finances”. Improving the quality of economic and financial data in the EU is a top priority for Germany’s deputy finance minister Caio Koch-Weser. He is also the newly re-elected chairman of the EU’s committee preparing EcoFin councils.