The European Central Bank (ECB) today said the EU finance ministers' decision to suspend excessive deficit procedures against France and Germany carried "serious dangers". The central bank said it deeply regretted Ecofin's decision not to act on the basis of the EU Commission's recommendations regarding the correction of France and Germany's excessive deficits.
"The conclusions adopted by the Ecofin Council carry serious dangers," the ECB governing council said in a statement. "The failure to go along with the rules and procedures foreseen in the Stability and Growth Pact risks undermining the credibility of the institutional framework and the confidence in sound public finances of member states across the euro area," it added. The governing council said it had taken note of the commitments by France and Germany to correct their excessive deficits as rapidly as possible and at the latest by 2005, "and strongly urges the Governments concerned to live up to their responsibilities". //www.fxcentre.com