Fenech ‘welcomes’ Hollande’s calls for changes in EU’s Stability Pact

"France's stand is a positive one, and is in line with what we have been saying since the beginning," Fenech told MaltaToday on the margins of a press conference at his ministry in Valletta yesterday.

He said that the Maltese government has "consistently emphasised that growth and stability go hand in hand and should not be divorced," adding that the pact needs to be balanced between growth and stability because "there is no growth without stability."

Fenech said measures on economic growth should be included in the forthcoming EU budget and should be given priority in the cohesion policy.

He also voiced his concern at the failure of pro-EU bailout parties in Greece to form a new government although "the result was not surprising."

Fenech warned however,  that should a new government in Athens be formed by parties opposing the austerity measures "it will practically be starring at bankruptcy in face, re-living the problems the previous Socialist government  before the bailout."

Meanwhile, Prime Minister Lawrence Gonzi has been summoned to an extraordinary, but informal EU Summit in Brussels on May 23, during which EU leaders are being called to discuss the recent political events in Europe following the elections in France and Greece.

Gonzi, and other EU leaders are to meet Francois Hollande for the first time during the meeting in Brussels, which has been called by EU President Herman Von Rompuy.

The agenda is said to be focused on how the EU can kick-start growth across the EU, especially within the 17 euro zone countries, while maintaining efforts to cut budget deficits and debt.

The summit will also lay the ground for another meeting on June 28-29 when leaders are scheduled to take formal decisions on their growth and budget consolidation strategy.