The French and German finance ministries have become the latest targets of the European Commission’s ire…

Date: 18/02/1999

...for failing to be sufficiently ambitious in their three-year budget plans. Commissioners this week criticised the 'stability programmes' submitted by both governments for failing to include a wide enough 'safety margin' in their public finances to cope with an economic slowdown. Economics Commissioner Yves-Thibault de Silguy said Germany's planned reduction of its budget deficit to1&percent; of gross domestic product in 2001 would mean that the debt-to-GDP ratio would not fall. Similarly, France's 0.8&percent;-of-GDP deficit target for 2002 could be derailed by slow growth, a rise in pensions payments or pressure on budgets.