Pleidooi Europese Centrale Bank voor strict Stabiliteitspact weggewuifd (en)

EUOBSERVER / BRUSSELS - EU leaders have formally endorsed the reform of the euro rules thrashed out by finance ministers last Sunday (20 March).

As expected, the reforms were rubberstamped without much discussion after finance ministers had debated the issue for a total of 30 hours - late into the night on several occasions.

Luxembourg Prime Minister Jean-Claude Juncker, the current head of the EU, said that the leaders cleared the agreement reached by finance ministers after a "brief debate".

EU sources said that Italian Prime Minister Silvio Berlusconi had tried to re-open negotiations but was persuaded to climb down by Mr Juncker.

And Mr Juncker was equally firm in dismissing recent comments from the European Central Bank (ECB), expressing concern over the reform.

The ECB said on Monday (21 March) it was "seriously concerned" by the reform of the rules, giving rise to fears that the bank will raise interest rates to counter what it sees as a loosening in fiscal policy.

The reform of the pact has been widely seen as a loosening of the rules, allowing member states more flexibility in running up debts and deficits.

The ECB has also warned several times that a weakening of the rules designed to underpin the euro could affect the confidence in and the stability of the entire currency area.

Serious concern all round

But Mr Juncker hit back. He said, "we are so seriously concerned by what the bank is saying that I have decided not to comment on the comments of the ECB".

Mr Barroso backed him by saying, "the ECB do their job and we do ours".

According to agency reports, Swedish finance minister Per Nuder had been told by the President of the ECB, Jean-Claude Trichet, that he could "live with" the reforms.

Mr Juncker received the congratulations of many EU leaders on achieving a breakthrough on what was at times seen an impossible task of reform the euro zone's fiscal rules.

Mr Barroso was especially fulsome in his praise, saying, "ladies and gentlemen, this is a tremendous achievement ... well done Mr Juncker".