ECB's Mersch against pact dilution

European Central Bank council member Yves Mersch has criticised larger European governments for trying to relax the budget-deficit rules underpinning the euro.

Mersch was quoted in an interview with Bloomberg as objecting to a proposal backed by Germany, France and Italy for a list of extenuating circumstances that would exempt countries that post deficits over the limit of 3 percent of gross domestic product from sanctions.

``The long list of exceptions, and the fact that it wasn't even accep