Euro row over stability pact

THE European Commissioner in charge of the single currency insisted yesterday that the rules for running the euro were working perfectly well, despite a claim from his boss that they are stupid.

Pedro Solbes now risks a head-on clash with Commission President Romano Prodi, who yesterday said the budget regulations in the eurozone are too inflexible for national economies to cope with. Mr Prodi described the Stability and Growth Pact as “stupid, like all rigid decisions“.

Yesterday, his spokesman in Brussels said the president did not regret the remarks.