EC: Bulgaria-Proposed Change in Debt Definition Relevant

The European Commission is expected to draft answers to the proposal over the next few days, before the next meeting on the Task Force on Sept 6. File photo

The European Commission said on Monday a proposal from nine European Union countries, including Bulgaria, to change the way debt among member countries is calculated, was relevant.

Bulgaria, Poland, Sweden and six other countries sent the EU a letter asking for a change in the way country debt is calculated.

The letter, addressed to the European Commission and EU President Herman van Rompuy, was signed by the finance ministers of the countries, which also include Hungary, the Czech Republic, Romania, Slovakia, Lithuania and Latvia.

The proposed recalculations relate to grants to private pension systems.

"The Commission services and Commissioner Rehn are analysing the proposals put forward ... and answers will be drafted over the next few days, before the next meeting on the Task Force on Sept 6," Commission spokesman for economic and monetary affairs Amadeu Altafaj told a regular news briefing.

He said the Commission, which is the guardian of EU rules, had no clear position on the issue yet.

"All I can say is that it is a relevant topic, it needs to be addressed now because we are in the process of discussing various elements of economic governance," Altafaj said.

"Of course the Commission would like the criteria on public debt to be strengthened and to be taken more seriously so it is highly relevant that this matter be raised now."

Meanwhile the German government expressed skepticism about the proposal, saying the change would also disadvantage governments that have chosen different ways of reforming their pension systems and share the costs of the reform differently.

“The introduction of exceptions in the definition of debt would make the figures more difficult to interpret at the EU level,” the ministry said on Monday in an e-mailed statement, as cited by Bloomberg agency.

European Union finance ministers will meet on September 6-7 to discuss new ways to monitor and shape economic policy.

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