EU finance ministers meet this week for the first time since ditching the eurozone's budget rules in November -- a contentious move that has now sparked legal action by the European Commission.
Another headache for the ministers when they meet today and tomorrow will be the euro's record-breaking surge against the dollar, which is provoking disquiet about the impact on Europe's economy.
Economic and Monetary Affairs Commissioner Pedro Solbes can expect a frosty reception this evening when he briefs the ministers on the lawsuit filed by Brussels against their highly controversial decision of November.
The 20-member commission last Tuesday agreed to challenge the finance ministers' decision to suspend the rules of the Stability and Growth Pact, which underpins the euro.
The ministers in late November refused to take action against France and Germany -- the eurozone's two biggest economies -- for flouting the rules, effectively leaving the stability pact in tatters.
The commission argues it was its "duty" to challenge the decision at the European Court of Justice in a bid to uphold its stewardship of the rules.
But the legal action has met with a cool reception in EU capitals, even in some of the four countries that opposed the November decision -- Austria, Finland, the Netherlands and Spain.
"It's the first meeting since the commission's decision has been announced so it will be the first opportunity to get reactions from around the table," an EU diplomat said.
"It's for the commission to do as it sees fit," he said, while adding: "We've made clear all along that the Council [of finance ministers] took its action based on legal advice."
Solbes may also take the opportunity to brief the finance ministers on changes the commission plans to announce next month to the stability pact, to put a greater emphasis on economic growth as well as fiscal discipline.
But the EU diplomat said: "Our sense since November is that there hasn't been a huge appetite to look at the rules of the pact at this stage.
"The widely held view seems to be that a cooling-off period is necessary," he said.
While grappling with the aftermath of the events of November, the EU finance ministers will also get a first chance to address the euro's recent runaway surge on currency markets.
While the currency has abated somewhat following several expressions of concern from the European Central Bank, the ministers are expected to prepare a message on exchange rates for a G7 meeting in Florida on Feb. 6 and Feb.7.
German Economy Minister Wolfgang Clement said last Thursday that it was "necessary to join forces with other regions" to achieve "equilibrium between currencies", when asked about the meeting of G7 finance chiefs.
A spokesman for Irish Finance Minister Charlie McCreevy, whose country holds the EU presidency, said the 12 euro countries were unlikely to issue a statement of their own on exchange rates.
"That's not to say that the euro group will not want to make one, but I would be very surprised," he said.
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