I'm interested in debt interest charges, as I did see a tremendous number of businesses go broke because they couldn't afford the high interest rates of 22% to 24%. We, of course, are in an interesting area right now.

Your Rapporteur also shares the ECA position on the co-financing rate for the proposed Hercule programme and agrees that extra co-financing in the future is not appropriate given that for example, technical equipment purchased through the programme will likely be used for activities in the national interest, not exclusively for the protection of the EU's financial interest, the Rapporteur believes the maximum co-financing rate should remain at 50% to ensure that EU and national interests are balanced.

Requirement of a close to balance or in surplus position || Country specific MTO in structural terms: - Provide a safety margin with respect to the 3% deficit limit - Ensure rapid progress towards sustainability - Allow room for budgetary manoeuvre For euro area and ERMII MS: limits of -1% of GDP Expenditure benchmark: expenditure net of discretionary measures should grow ≤ medium-term potential GDP || 0.5% GDP as a benchmark: - More in good times - Less in bad times >0.5% if debt above 60% or if pronounced sustainability risks Temporary deviation from the adjustment path allowed if: - Implementation of major structural reforms with a ve ...[+++]rifiable impact on the long-term sustainability of public finances – emphasis on pension reform - Unusual event outside the control of the MS concerned with a major impact on its financial position - Severe economic downturn for the euro area or the EU as a whole provided this does not endanger medium term fiscal sustainability || Procedure for correcting significant deviation (0.5% in one year or cumulatively over 2 years from the MTO or the adjustment path it) For euro area: financial sanctions in case of repeated non-compliance (interest-bearing deposit of 0.2% of GDP)

Commonly accepted actuarial practice requires that a period of past observations between 20 and 40 years be used for interest rates and salary growth with a view to ensuring the balance of pension schemes.

We know that interest rate policy is a balancing act, but, as whole, 2003 saw the ECB continuing to do a good job of keeping things on an even keel; the economy is growing, the euro is stable, and interest rates are low in real terms.

This positive growth outlook is underpinned by a number of factors: * strong external demand; * high profitability of investments; * historically low rates of inflation; * falling interest rates (both long and short-term rates) resulting from an improved balance (policy mix) between monetary and budgetary policies and moderate wage developments; * stable exchange rates which have broadly returned to their levels before the fluctuations of Spring 1995.