Merkel Warns Hollande: EU Fiscal Pact Not Renegotiable

German Chancellor Angela Merkel (L) pictured with Chinese Prime Minister Wen Jiabao (R) at the Volkswagen plant in Wolfsburg, Germany, 23 April 2012. EPA/BGNES

The Fiscal Union Accord signed by 25 EU countries out of 27 is not negotiable, German Chancellor Angela Merkel has declared.

Speaking in an interview with the Leipziger Volkszeitung daily, Merkel made it clear that Germany would not agree to a renegotiation of the so called EU fiscal pact.

Her remarks come shortly after French presidential hopeful Francois Hollande asked that the accord be reviewed to focus more on growth than on austerity.

"There will be no new negotiations on the budget pact. Twenty-five heads of government have signed it," Merkel said, referring to an accord for member countries to keep annual budget deficits within EU targets or face sanctions.

"It has already been ratified by Portugal and Greece and Ireland will put it to a referendum in May," she added, as cited by RIA Novosti.

Hollande, who came about 1% of the votes ahead of incumbent Nicolas Sarkozy in the first round of the French presidential elections, said if elected, he would announce that "the French people have made a decision that presents a renegotiation of the deal."

In view of the close French-German partnership in European and global affairs, Merkel has endorsed Sarkozy for a second term in the French Presidency but has also made it clear she would have no problem working with Hollande, should the latter score a win in the runoff.

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