Germans close in on pact success

GERMANY was in line to have some of the massive costs of reunification taken into account under a revised Stability and Growth Pact last night.

Finance ministers worked into the night in Brussels hammering out a new deal under the pact, which is designed to keep the euro economy healthy. They agree the pact is too rigid in insisting countries do not run deficits of more than 3% a year and keep debt under 60% of their GDP.

Countries vary widely over what amount of flexibility should be built into a revised pact with those most frequently breaching the deficit rule France, Germany and Italy looking for most leeway.