EU states warned of deficit 'disaster'

GERMANY - A senior Bundesbank official has criticised EU member states who have run up huge budget deficits and now demand a relaxation of the terms of the Growth & Economic Stability Pact which puts strict limits on government borrowing.

Jurgen Stark, vice president of Germany's central bank, warned that any weakening of the pact "would send a disastrous signal to the markets and would trigger increased volatility and greater instability" of the euro.

He warned that interest rates might have t

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: