Duisenberg warns Germany, France over budget deficits

EUROPEAN Central Bank President Wim Duisenberg said Germany and France are putting economic growth and jobs at risk by flouting budget-deficit limits designed to boost confidence in the euro.

With growth in the 12-nation euro economy sliding toward a 10-year low, Duisenberg used his farewell appearance in the European Parliament to blame governments for hobbling Europe’s competitiveness with high deficits and regulations.

Declaring himself “satisfied’ with the ECB’s handling of the economy, Duisenberg, who retires on November 1, told a parliament committee in Brussels that in “fiscal policy, we have seen a process where commitments have repeatedly been broken” and said soaring US deficits set a bad example for Europe.