Minister Zalm hekelt overtredingen euro-afspraken door Frankrijk (en)

The battle between the smaller countries and France and Germany on the implementation of the euro rules intensified over the weekend.

On Thursday, German Finance Minister Hans Eichel said that the Netherlands - its main critic in the battle over the euro rules - would also break the rules next year.

But in an interview with German daily Die Welt on Saturday, Dutch Finance Minister Gerrit Zalm emphatically denied this and launched a strong attack on Germany's recent flouting of the rules.

Mr Zalm said that Paris and Berlin were in clear breach of the rules and that "this is bad for all EU citizens".

"There is a danger of interest rate hikes and inflation, which could even undermine the stability of the euro", continued Mr Zalm.

Impact on accession countries

Mr Zalm drew attention to EU enlargement , saying that the current behaviour of France and Germany threatens the prospect of future EU members joining the euro.

"Due to the French and German breaches of the Stability Pact, it will be harder to join the euro zone".

More sceptical, now

Politically, Mr Zalm - who is also Vice-Premier of the Netherlands - says he is now more sceptical of EU integration.

He says, "I have become more sceptical. I am now, more than before, a definite advocate of the subsidiarity principle".

The subsidiarity principle states that decisions should only be taken at the EU level when the goal cannot be better achieved at the national or regional level.

The next round in this battle is due at the next meeting of finance ministers on 24 and 25 November. Ministers are expected to vote on how to treat France and Germany for their breach of the rules, after delaying the decision at their last gathering.