Prodi urges more flexibility on Pact

European Commission president, Mr Romani Prodi, has called for more flexible rules governing the 12-nation euro zone, amid warnings that war on Iraq could throw the region's economy further off course. Prodi famously referred to the Pact as 'stupid' several months ago.

Mr Prodi's comments to the European Parliament came after Monetary Affairs Commissioner Mr Pedro Solbes gave the first indication of a possible relaxation of the Stability and Growth Pact should war break out.

The head of the

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