European Union finance ministers Tuesday agreed that new rules are needed to avoid boom-and-bust cycles in financial markets, but they rejected Germany's bid to suspend capital requirements for banks. The ministers, following their monthly meeting in Brussels, criticized the current bank-capital rules outlined in the Basel II Accord. This international agreement, signed in 2004, was designed to ensure banks had enough capital in reserve to guard against risks. E.U. policy makers have criticized this framework for being "pro-cyclical," saying it allows banks to shed reserves when the economy appears healthy and forces them to stockpile capital when risks emerge - when the economy likely already has started to contract.