Central Banking

ECB suggests relaxation of 3 pct deficit limit

With regular criticisms of the EU's stability and growth pact deficit ceiling of 3 pct of GDP, which several countries have exceeded the ECB is floating the idea of giving more leeway for EU candidate countries struggling to meet the targets so as not to jeopardise their recovery prospects.

In a discussion paper the ECB said a few of the aspirant member states "face a substantial degree of fiscal consolidation" before meeting the stability pact target.

"It is an open question whether these coun