31 August 2001, 14:57 Eichel says in favour of strengthening stability pact, not weakening it
BERLIN (AFX) - German Finance Minister Hans Eichel said he is in
favour of strengthening the stability pact to which euro zone
governments adhere, rather than weakening it.
Eichel told journalists in Riga earlier this month that the pact
was agreed when most EU governments were running heavy budget deficits
and that it might be more useful in the current situation to follow
spending targets than the rigid annual deficit reduction laid out in
the stability pact.
European Central Bank president Wim Duisenberg said yesterday that
attempts by governments to change the EU's stability pact could damage
the economy and undermine credibility in the consolidation of national
budgets.
Speaking at a Franco-German economic summit here today, Eichel also
said that Germany will "certainly" not reach the government's 2.0 pct
growth forecast for this year.
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