Stability and Growth pact deal not suspended: Solbes

Pedro Solbes, EU economic and monetary affairs commissioner, has denied that the EU Stability and Growth Pact is suspended.

His remarks came after the euro group of fifteen finance ministers this morning overturned the commission's deficit-reduction proposals targeted against France and Germany.

He said that the commission's decision was political and without legal basis.

Meanwhile, German Finance Minister Hans Eichel told reporters the pact remains in force.

Italian Finance Minister Giulio Tremonti said that four countries - Spain, the Netherlands, Austria and Finland - had opposed the agreement.

The deal is to be put to all 15 ministers today.