McCreevy indicates flexibility on French budget

The Minister for Finance, Mr McCreevy said today that his European Union colleagues were willing to be flexible over France's…

The Minister for Finance, Mr McCreevy said today that his European Union colleagues were willing to be flexible over France's failure to respect budgetrules, but there had to be give and take on both sides.

"I think most finance ministers are inclined to be flexibleand are willing to listen to good ideas put forward," he toldCNBC television. "But there has to be a give and take on bothsides, not just on one side."

Speaking at a meeting of EU finance ministers in Italy, heplayed down the possibility of France being fined for allowingits budget deficit to break the EU limit set at three percent ofgross domestic product.

Paris says it needs tax cuts to spur economic grow, meaningit won't meet the rules until 2006.

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"It's not a question of any member state going in to try andpunish another one," he said from the lakeside resort of Stresa.

But he added: "You have to realise the difficulties whichthis presents for finance ministers and heads of state of othermember states ... Other member states are making considerableefforts to comply with the rules and in most member states, dueto the economic downturn, most finance ministers are underconsiderable pressure in their own country."

McCreevy was asked whether Swedes, who vote on Sunday onadopting the euro, would regard monetary union as an attractiveclub, given the budget dispute raging in Stresa.

"It's important that when people are joining a club theyknow what the rules are and that the rules are going to beenforced," he said. "You can always change the rules and thenwe'll enforce the new rules."