The European Commission today proposed to amend the two regulations underpinning the Stability and Growth Pact following the agreement at the European Council in March. The result is a balanced compromise which re-affirms Member States commitment to sound budgetary policies, allows greater flexibility to correct an excessive deficit and reinforces the momentum for economic reform. The Commission hopes that the proposed changes, which are limited in size and scope and reflect the report endorsed by the Council, will be agreed by the European Parliament and adopted by finance ministers before the end of June