EMU: FRANCE REFUSES TO BALANCE ITS BUDGET BY 2003.

Greece's Finance Minister and the acting President of the Eurogroup, Nikos Christodoulakis, said that "Ministers and the European Central Bank (ECB) agree with the Commission that countries should pursue adjustments in structural deficits of at least 0.5% without letup". This commitment concerns those countries that have still not balanced their budgets: Germany, Italy and Portugal. However, the Eurogroup President acknowledges that France, which has not conformed to this objective either (it is anticipating a deficit of 2.6% of GDP in 2003, unchanged on 2002), has "refused to comply in 2003, without committing itself for the following years".

Drawing an apparently conciliatory line towards France, Economic and Monetary Affairs Commissioner Pedro Solbes has suggested that discussion on the final target date for budgetary balance in individual Member States is "premature". On September 25...