Many euro zone governments are likely to post fiscal deficits at or above the 3 pct of GDP stability pact limit both this year and next, the European Central Bank said. "It is by now manifest that most countries will miss their (2005) budgetary targets...in some cases by a large margin," the ECB said in its September monthly bulletin. It said the five countries currently facing excessive deficit procedures -- Germany, France, Italy, Greece and Portugal -- are again likely to be very close to or above the 3 pct of GDP threshold. And it added: "It appears that deficit ratios for the euro area and in many countries will remain near or above 3 pct of GDP also in 2006." It said budget policies remain insufficiently ambitious in many countries, and there are particular concerns about the five excessive deficit countries. "Fiscal imbalances are of particular concern in the five countries currently subject to excessive deficit procedures," it said. The ECB said the 2007 deadline for Italy to correct its deficit and the 2008 deadline proposed for Portugal constitute a very generous application of the stability pact's new rules. Germany and France are obliged to correct their excessive deficits this year, after breaching the 3 pct of GDP limit in each of the previous three years, while Greece has to bring its deficit into line with the stability pact target by 2006. "The governments need to stand ready to take all the necessary action to correct their excessive deficits within the respective deadlines," the ECB said. It said the five excessive deficit countries will again come very close to or exceed the 3 pct of GDP threshold this year. And for once the central bank took the unusual step of commenting on the budget policies of each of the five countries individually.