THE European Union Monetary Affairs Commissioner has said that prospects are good that EU finance ministers would agree a post EMU stability pact at a meeting in Dublin on September 21st. "I think we will have the basis for a compromise in Dublin," Mr de Silguy said. "Countries must be in no doubt that persistent deficits (after Economic and Monetary Union) will be penalised."

While nearly all EU governments have agreed with the principle of budgetary discipline for countries inside an economic and monetary union (EMU), how to structure a credible plan has remained elusive.