Schroeder defiant after escaping EU sanctions

Chancellor Gerhard Schroeder remained defiant today after Germany and France faced down a threat of EU sanctions over their ballooning budget deficits, angering smaller member nations and sparking concern about the euro’s stability.

Addressing parliament in Berlin, Schroeder derided the European Commission and insisted that supporting Germany’s fragile economic recovery with a planned January 1 tax cut was more important than fiscal restraint.