The European Commission rejected an OECD warning about threats to the EU stability and growth pact's credibility.
The EC cited its decisions to take disciplinary action against Germany and France over their widening deficits.
The OECD said in its semi-annual Economic Outlook report released this morning that the pact's credibility is at risk from political pressure to bend its rules.
OECD chief economist Mr Jean-Philippe Cotis said the pact "hasn't worked" and needs improving.
However, EC spokesman Mr Gerassimos Thomas said the commission's decision on Tuesday to initiate the EU's excessive deficit procedure against Germany and to propose an early warning for France have bolstered the pact's credibility.
He also said the commission will next week issue a statement on strengthening economic policy and budgetary co-ordination.
AFP