ECB 'warns against relaxing Stability Pact'

The logo of the European currency is pictured in front of the European Central Bank ECB in Frankfurt am Main, Germany, May 26, 2014A European Central Bank executive warned against proposals by centre-left leaders in Europe to relax EU public deficit rules, in comments published in a German newspaper Sunday. “The Stability and Growth Pact should not be relaxed to the point where it loses its credibility,” ECB executive board member Benoit Coeure was quoted as telling the Frankfurter Allgemeine Sonntagszeitung. In the debate over how to revive crisis-hit economies, countries including France and Italy have called for more flexibility and time in meeting the strict conditions of the Stability Pact. Accumulated debt, the sum of all those annual deficits, is supposed to be kept at 60 percent of GDP, under the EU’s Stability and Growth Pact.

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