BoE's King: 'Coach and horses' driven through pact

Bank of England governor Mervyn King criticised European Union leaders for loosening the fiscal rules that underpin the value of the euro on Thursday 24 March, saying restrictions on government spending in the region lack "discipline."

EU leaders yesterday agreed to allow finance ministers to permit deficits over 3 per cent of gross domestic product in some cases. The rules permit finance ministers to consider ``relevant factors'' such as slower growth or Germany's costs to rebuild its ex-comm