The European Commission, the executive arm of the European Union (EU), set out some preliminary ideas on Thursday in Brussels for a reform of its economic policies, which have been the cause of extreme controversy in the past.

Without making specific proposals, EU Commissioner for economic and monetary policy, Joaquin Almunia, set out three main ideas for reforming the EU's "stability and growth pact," the set of rules which underpins the euro.

First, he proposed that more effort should be made by member states to consolidate their finances during times of economic upswings. Currently, member states must ensure that their budget deficits do not exceed 3 percent of gross domestic product.

Brussels would like to see reserves built up when growth is healthy to avoid running into deficits during downturns.

Second, Almunia told reporters that more emphasis should be placed on debt levels of member states rather than concentrating on deficits.

And finally, he suggested that more account should be taken of the individual economic situations of member states rather than the catch-all approach of the present system.

Almunia's proposals come at a time when the controversy over the rules is still ongoing. Germany and France, the EU's largest economies, are expected this year to break the rules for a third consecutive year.

Meanwhile, the European Court of Justice will soon decide whether member states acted illegally last November when they voted to suspend the Commission's disciplinary procedure against France and Germany - effectively suspending the pact.

Source: Xinhua