Eichel Supports the Stability Pact

Before the start of a meeting of EU finance ministers and the heads of central banks in in Stresa, Italy on Friday, the German Finance Minister Hans Eichel has said he supports the EU's Stability & Growth Pact known. The fate of the pact, which restricts deficit spending to 3 percent of the budget, has been in question recently, since both Germany and France are in danger of violating the pact's rules for the third year in a row and could face hefty fines. Many have questioned whether or not they would continue to support the pact's existence. Eichel did say he hoped to discuss how the pact should be applied in special circumstances, like "in a situation of three years of stagnation" such as Germany is facing now.