The ELDR Party is surprised to learn about the deal apparently struck between German Chancellor Angela Merkel and French President Nicolas Sarkozy to abandon the idea of automatic debt penalities. "Such an agreement would completely contradict the necessity to strengthen the EU’s Stability and Growth Pact in order to strengthen the Euro and the EU as a whole," commented ELDR Party President Annemie Neyts-Uyttebroeck MEP.

In today’s Der Spiegel, German ELDR Member FDP’s Party Leader and German Foreign Minister Guido Westerwelle calls for an authoritative and assertive European agreement how to deal with future deficit spending of EU members. In this, he enjoys the full support of European Liberals. "The Euro crisis has taught us that stability and trust can only be maintained with discipline. This agreement between the two heads of states clearly goes the other way", President Neyts-Uyttebroeck continued.

Strict rules are now needed to avoid future crises. Automatic sanctions are needed if Euro zone members do not maintain fiscal discipline and do keep their annual budget deficits below 3 percent of GDP. It may not be any longer subject to a political decision of the European Council of Ministers whether sanctions seem feasible or not.

Unlike some heads of states, Liberals in the European Parliament have learned their lessons following the financial crisis and led a strong majority calling for stricter enforcements. Also the ELDR Party adopted at its annual Congress in Helsinki last week a strong resolution calling for a strong and credible currency.

"This is not over yet, European Liberals will pick up this issue at the Liberals Prime Minister summit ahead of the European Council meeting on 28 October 2010 in Brussels", concluded ELDR President Neyts-Uyttebroeck.

The ELDR Leaders Lunch Summit will be arranged on Thursday 28 October between 12:00-14:00 at Concert Noble, Rue d’Arlon 81, Brussels.

A press conference will be convened at Concert Noble, 82 rue d’Arlon, 1040 Brussels, Belgium at 13:30. For further contacts and list of participants, please contact ELDR Press Officer Chiara Puletti (cpuletti@eldr.eu, +32 2 237 01 43)