FRANKFURT (AFX) - The EU is to allow countries to post higher than previously planned nominal deficits this year and in 2002, reneging on its earlier budgetary goals, Handelsblatt reported, citing an aide to Belgian finance minister Didier Reynders. The aide, Marc Marchal, told the paper allowance will be made for countries which have been hit by the economic slowdown. He added this course had been unanimously agreed by the eurogroup of finance ministers at its meeting on July 9. "The finance ministers want to take account of the economic downturn more strongly than has been the case so far," Marchal said. The paper said the new course would be of help to Italy and Germany, both of which are expected to post high budget deficits this year. The Bundesbank said last week Germany's budget deficit this year is likely to be at least 2 pct of GDP, compared with the government's target of 1.5 pct. The paper added German finance minister Hans Eichel and his French counterpart Laurent Fabius want to relax the rules of the EU stability and growth pact. It said the ministers are unhappy their governments have to set annual budget deficit goals and want spending targets to be formulated differently. Marchal told Handelsblatt a revision of the stability pact had yet to be discussed. "This could change after the summer holiday at the start of September," he said.