Italian prime minister Silvio Berlusconi, whose country holds the EU presidency, today said the EU has to accept "the odd exemption" to the EU Stability and Growth Pact's deficit rules. His comments came after the European Commission yesterday controversially proposed giving France another year to get its deficit under 3pc. "I think somebody has already observed that the 3pc should not be taken as an absolute value beyond discussion. But it might be adjusted down by 1-2pc if the economy is expanding, or it might go up to 4 or four-odd per cent if you are during a stagnation of the economy," he said. "I believe that closer attention, a more mature reading of the Stability Pact might in the future have the effect of adjusting certain aspects of it," he added. Berlusconi also said that while the Stability Pact has to be seen as an asset, the EU would have to accept the "odd exemption" for certain countries taking account of the specific stage of the economy and extraordinary events that impact on growth, such as September 11 and the US campaigns in Afghanistan and Iraq. //www.fxcentre.com