EU ministers likely to amend Stability Pact

EU finance ministers are likely to discuss reconstructing the strict budget rules that underpin the euro this weekend, the Minister for Finance, Charlie McCreevy, said yesterday.

Speaking yesterday to the Oireachtas Joint Committee on European Affairs, Mr McCreevy defended EU finance ministers' decision to suspend strict disciplinary action against Germany and France for breaching the Stability and Growth Pact by letting their budget deficits run over EU limits.

The eurozone heavyweights are on course to breach the ceiling - 3% of GDP - for three years running in 2004.

Mr McCreevy said yesterday that the decision to suspend disciplinary action against France and Germany had highlighted the question of whether the pact needed to be "further developed to take account of more complex circumstances" that affect different EU members.