German Finance Minister Hans Eichel reiterated on Sunday his view that there is a need for a less mechanical implementation of the European Union's Stability and Growth Pact.
"Until now, we've handled the EU Stability Pact in too much of a mechanical and legalistic way," Eichel told the Handelsblatt newspaper in an interview to appear on Monday.
"It's a mistake to view just one single criteria, the three percent deficit - which I'm not casting any doubt on," he said. "I'm confident we'll jointly come to a reasonable discussion on it."
Germany has broken the Pact's limit on budget deficits, set at three percent of gross domestic product, for two years.
In November it teamed up with France, which is in a similar position, to persuade EU finance ministers effectively to suspend the Pact's sanction mechanism.
Both countries are on track to break the deficit limit again this year and possibly also in 2005, something which would have opened the door to fines laid down in the pact.
Eichel has blamed three years of weak growth for Germany's budgetary woes, although problems have also arisen as the country is mid-way through implementing a programme of tax cuts.

Copyright Reuters, 2004

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