Liebscher warns on stability pact reform

Plans to reform the European Union stability and growth pact could lead to a loss of confidence in the euro, the governor of the Austrian central bank said Friday.

Governor Klaus Liebscher said the reform plans, which would extend a list of exceptions that would be accepted as justifications for higher deficits, could lead to less budget discipline among EU countries.

The exceptions would include a country's investment spending, structural reforms, research spending as well as "exceptional circ