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It is being described as the biggest crisis yet to hit the European Union. The bloc's finance ministers have agreed to effectively suspend the union's budget rulebook to spare giants France and Germany from disciplinary action after they repeatedly exceeded their budget deficits. The move has infuriated Spain, the Netherlands, Finland and Austria. "The law is the same for everyone", said Spanish Prime Minister Jose Maria Aznar, "this is a step backwards. Today is not a good day for Europe or the European economy." Some small countries, who have themselves fought hard to to keep within the letter of the pact, have slammed the move.
Austria said it had lost a battle, but not the war, with possible reference to the new EU constitution, which is up for negotiation next month. Ironically, the Growth and Stability Pact, which sets out budget deficit limits for eurozone members, was hammered out at German insistence before the launch of the euro to protect the common currency.
German Chancellor Gerhard Schroeder, who called the compromise "reasonable", said "sometimes one has to put more emphasis on the growth side of the pact rather than its stability side, both in the national interest and the interests of Europe". The decision marks a stinging blow for the European Commission, which is threatening to take the case to the European Court of Justice.
[Source: Euronews.net]
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