ECB warns of finance ministers' decision
The European Central Bank (ECB) has warned of "serious dangers" in European Union finance ministers' decision to suspend the European Stability and Growth Pact.
This effectively suspends deficit procedures against France and Germany.
In a statement issued today the ECB said: "The failure to go along with the rules and procedures foreseen in the Stability and Growth Pact risks undermining the credibility of the institutional framework and the confidence in sound public finances of member states across the euro area."
The central bank said that it was concerned that the new departure could have an effect on confidence within the eurozone.
"It is now absolutely imperative that effective action be taken to limit negative effects on confidence. The governments concerned must live up to their responsibilities.
"The public can rest assured that the governing council remains staunchly committed to maintaining price stability," the ECB added.
