Court starts budgetary deficits row case

28th April 2004, Comments 0 comments

28 April 2004 , BRUSSELS - The European Court of Justice on Wednesday started hearing legal arguments in a European Commission case against European Union finance ministers over application of the eurozone stability pact. The Commission - which is eurozone financial watchdog as well as the executive arm of the European Union - says EU ministers broke eurozone financial rules last November by failing to take disciplinary action against Germany and France although both countries had allowed their budget defi

28 April 2004

BRUSSELS - The European Court of Justice on Wednesday started hearing legal arguments in a European Commission case against European Union finance ministers over application of the eurozone stability pact.

The Commission - which is eurozone financial watchdog as well as the executive arm of the European Union - says EU ministers broke eurozone financial rules last November by failing to take disciplinary action against Germany and France although both countries had allowed their budget deficits to breach the stability pact threshold of 3 percent of Gross Domestic Product (GDP).

Europe's highest court will decide by summer whether EU finance ministers did indeed break eurozone rules.

The court's ruling is expected to have a major impact on the future of the stability pact, especially since both Paris and Berlin are still in breach of the deficit rules.

Italy, Britain and the Netherlands are also now in the Commission's firing line.

The Commission on Wednesday served Italy with an early warning on its budget deficit and said it was putting Britain and the Netherlands under strict surveillance.

DPA

Subject: German news 

0 Comments To This Article