EU tells Britain to tighten belt

EUROPEAN Union finance ministers told Britain yesterday it was running an excessive budget deficit and gave the country until the 2006/2007 fiscal year to bring the gap below the EU ceiling of 3%.

The ministers acted on a January 11 recommendation from the European Commission, the EU executive, which polices the EU'sbudget rules the Stability and Growth Pact that underpins the single euro currency.

"The Commission's decision and recommendations on the United Kingdom budget deficit have been adopted by the ministers," a diplomat told Reuters.