European Union President Herman Van Rompuy (photo) attempts to soften some of the most controversial provisions of a euro-zone economic package proposed by France and Germany, according to Dow Jones Newswires.
A senior official from the currency noted that the new version of the so-called competitiveness pact is being drafted by European Council President and the European Commission, after the original Franco-German pact was met by with great opposition at a summit earlier this month.
Unlike the Franco-German pact, this latest paper will not ask member states to harmonize their corporate tax bases, the official said. That was of particular concern to Ireland, which has one of the EU΄s lowest corporate tax rates, said the newswires.
Nor would the pact abolish the practice of indexing wages to inflation. Instead, countries will need to institute mechanisms that can prevent wages from rising too quickly.
However, many of the pact΄s other provisions remain roughly in place, such as an increasing of public pension age.
“National governments must put together plans that show that their pension system is sustainable,” the official said, according to Dow Jones.
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