Euro Pact Reform to be Unveiled

Plans to reform the Stability and Growth Pact -- the set of rules underpinning the euro - are set to be unveiled by the European Commission Friday, according to French financial daily, Les Echos. The reforms are expected to result in a softening of the rules, which have caused huge rows in recent months between member states themselves and between Brussels and some EU countries -- notably France and Germany. Two main changes to the rules are expected, according to the Financial Times. First, the circumstances under which a so-called excessive deficit is permitted are expected to change, allowing member states to run a deficit over 3 percent. Second, Brussels is likely to soften the deadlines it imposes on EU countries to reduce their deficits. Currently, a country in breach of the pact is given four months to publish a plan to get the deficit down and then has one year to implement it. (EUobserver.com)