EU in disagreement over euro rules

Finance ministers from all 25 EU member states continued talks launched late Monday by ministers from the 12 euro nations on how best to revamp the Stability and Growth Pact.

They took an expected decision to drop disciplinary action against France and Germany after concluding that the eurozone's two biggest economies will meet an EU deficit target -- three percent of output -- this year.

But a demand by German Chancellor Gerhard Schroeder for a dramatic loosening of the euro rules drew critic