EMU: COMMISSION REJECTS STABILITY PACT POSTPONEMENT.

The European Commission has ruled out any idea of calling into question the Member States' undertakings to comply with the Stability Pact provisions. This means achieving the budgetary objective of positions close to balance or in surplus by 2004. The Commission announced on May 14 its adoption of a report on government spending and EMU (see separate article, same Section). The Commission is critical of the new French Government's idea of altering its budgetary commitment so as to reflect tax cut pledges. EU leaders have given official undertakings to balance their budgets by 2004 if not before. Jean-Claude Juncker, the Luxembourg Premier, claims this a genuine issue of credibility. To say the deadline has to be pushed back from 2004 to 2007 is tantamount to giving the outside world the impression that are our decisions are no longer valid, he said in a statement reported in a British newspaper.Compliance with the Pact's provisions is regarded of vital importance for guaranteeing the credibility of...