Euro zone credibility at stake if budget rules flouted

EU economic and monetary affairs commissioner Mr Pedro Solbes said the credibility of the euro zone's budgetary rules is at stake…

EU economic and monetary affairs commissioner Mr Pedro Solbes said the credibility of the euro zone's budgetary rules is at stake if member states do not meet their commitments to balance budgets.

Commenting after France refused to join other euro zone members in agreeing that countries with large structural deficits should reduce them by 0.5 per cent of GDP per year, Solbes said he is "very happy" that nearly all euro group members supported the commission's proposal.

In a statement here, Solbes added that the euro zone group is at a "critical juncture", "with its "credibility at stake" if budgetary commitments are not met.

PA