ECB warns about deficits, inflation

BELGIUM - The president of the European Central Bank, Wim Duisenberg, urged euro-zone government to stand by promises to balance their budgets by the end of 2004, here on Tuesday.

He told members of the European parliament that he wanted to stress forcefully that all euro-zone states had to respect their commitment to remove public deficits by 2003 or 2004.

It was of the greatest importance that they did so in order to ensure that the Stability and Growth Pact worked.

France has said that it