EU Commission rejects UK criticism of its deficit warning for Germany
BRUSSELS (AFX) - The European Commission rejected the UK's criticism of its budget deficit warning to Germany.
The UK treasury issued a statement on Friday saying the commission's decision to propose a warning for Germany is not consistent with a prudent interpretation of the stability and growth pact.
Chancellor of the exchequer Gordon Brown will support Germany in opposing the warning at tomorrow's meeting of EU finance ministers, the statement said.
Commission spokesman Gerassimos Thomas said: "I think the commission's interpretation is as prudent and as coherent as the member states decided to make it when they approved the stability and growth pact."
The UK's support for Germany and presumably Portugal means the comission's warnings for both countries look set to be overturned tomorrow, in what Thomas signalled would be a blow for the pact's credibility.
The treasury said in its statement that the UK has consistently said it supports a prudent interpretation of the pact which takes into account the economic cycle, sustainability and the role of public investment.
Thomas said: "The commission, within the framework of the existing pact, has taken into account the cycle as much as possible."
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