France 'not alone' on excluding defence spend

Defence Minister Ms Michele Alliot-Marie said France was not alone in believing defence spending should be exempt from the EU…

Defence Minister Ms Michele Alliot-Marie said France was not alone in believing defence spending should be exempt from the EU stability pact which sets tough budget conditions for euro- zone states.

In an interview published in French Sunday newspaper Journal de Dimanche, Ms Alliot-Marie said excluding defence spending was an issue several European countries had raised.

"Certain countries feel after all quite restricted by the Maastricht criteria. Perhaps it is necessary - since the idea has been raised by several countries - to exclude 'defence credits' from the stability pact so that Europe can give itself true protection," she said. She did not specify which states favoured the idea.

Last week Ms Alliot-Marie said France, which approved a €1 billion a year increase in military spending for the next five years, wanted to exclude military spending from the Stability and Growth Pact.

READ MORE

Under the Maastrict budget criteria, incorporated in the pact, euro-zone governments have to keep their public deficits below3 per cent of gross domestic product (GDP). They have also pledged to balance their books by 2004. - (Reuters)