While Elisa Ferreira argues stringent cuts choke the economy, Esther de Lange warns that delays to fix France, Italy and Belgium's budgets undermine EU credibility.

Extra time to fix bloated budgets: lifeline or folly?

France, Italy and Belgium  have just obtained three more months

to present a detailed calendar  of budget reforms.

Commissioner Pierre Moscovici outlined  the Commission's new approach to MEPs.

We met two of them, Elisa Ferreira  from the Socialists and Democrats

and Esther de Lange  from the European People's party,

to speak about  the situation in the Eurozone.

So, have the stability pact rules  been respected?

It's a matter of credibility and trust  in the EU and in the European Commission.

And the question  that was put to the Commissioner -

on what legal grounds  they have given this extra time -

no real, clear answer  was given to that question.

So, for me the question mark remains,  and that's not a good thing.

This is exactly how  the rules should be interpreted.

We have to use to the full  the margin of manoeuvre that is allowed,

because we are in the midst of  a serious economic downturn

and these are exceptional circumstances.

So it is an obligation of the Commission

in these circumstances to use  the flexibility embodied in the legal texts.

What room for manoeuvre  should governments have

so we need to stick to the rules  that we have agreed to

while at the same time -  and the Juncker Commission is doing this -

seeing how we can stimulate investments,

not by using public money but money  that is coming from the private sector.

Can we stay for any longer  in this stagnant economic situation?

Prices are falling.  There is no recipe for this.

So this calls for emergency action  from the side of fiscal policy.

So all the Member States  should be told by the Commission,

'OK, start investing, start slowing down  the adjustment process,

Should Germany be putting in greater  investment as EU's leading economy?

Germany is a major player.  We don't need to repeat it.

But it cannot use its power  only to the benefit of its own citizens,

because German citizens  have also benefited and benefit still

from the stability of the single currency

through the internal market  and open markets.

And when there is a crisis,  we have to look at the whole of the Union

I don't think it's a good thing to focus  the debate only on German investment

if it means other states not implementing  the structural reforms they have to do.

There should be a balance, and every  Member State should play its role.

What I see in these debates too often is that  there is a focus on one, or maybe two,

so as to let others off the hook.  And that's not my way of doing politics.

Next year will see a review of  the two-pack and the six-pack.

What would you like to see change?  -Maybe we should take a bit more time

to have a thorough review  of the six-pack and the two-pack.

That is what we're going to do  in the next couple of months.

One of the three elements that  I can already confirm we will be looking at

is of course democratic legitimacy,  or ownership,

and the transparency of  how the decisions are taken.

You cannot go on adjusting  public investment and expenditure,

and doing this in all the Member States  at the same time.

You end up without any fuel  for the economy.