The fourth draft text of the international agreement on fiscal stability, coordination and governance contains a number of welcome improvements from the previous version. Nevertheless, at the forthcoming meeting of the Eurogroup on Monday evening, in the presence of Parliament's negotiators, ALDE President Guy Verhofstadt will reiterate his doubts on the need for this agreement which is focussed exclusively on establishing budgetary rigour which, although necessary, ignores the evident need for the European economy to pursue a growth oriented agenda.

Guy Verhfostadt said : "However such progress should not hide the legal inconsistencies but rather expose them. By asking the Commission to modify the Stability and Growth Pact the Contracting Parties confirm the right of initiative of the EU's executive.  However, they should not assume that, given the tight majority for the original 6-pack, the Parliament will necessarily approve the new changes in this area."

"What is more serious though is that this agreement, the usefulness of which in controlling finances is unclear, does not provide a response to the current crisis at such a crucial juncture with Europe on the edge of a recession. The Eurogroup and finance ministers would be more credible if they spent less time arguing about new legal provisions and more time focusing on the measures to restore growth. There is virtually no progress on the multi-annual financial framework negotiations nor on project-bonds despite the key role in providing the means for future investment and growth.

We have the impression that the Council is fixed on the past and unable to envisage new tools such as the German economic council proposal for a redemption fund which could be introduced relatively quickly."