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PARIS AND BERLIN ESCAPE SANCTIONS
Tuesday 25th November 2003
Euroland Finance Ministers agreed last night to let France and Germany off the hook over breaking the Growth and Stability Pact, the rules governing the Euro. The Council conclusions state that Paris and Berlin are not in breach of the EU treaty and therefore no fines can be applied.
After haggling until 5am, France and Germany have been allowed an additional year to reduce their deficits and bring them in line with the Pact. The issue will be officially voted on by Finance Ministers including Gordon Brown later today.
Timothy Kirkhope, MEP for Yorkshire and the Humber, said:
"Surely this must be the end of the Stability Pact. Why should any country comply with it, when the two biggest Euroland economies are flouting it and getting off scot-free?
This is also another blow to the credibility of the Euro. The Pact was billed as an essential way to make the Euro work - now it is coming apart at the seams."
