Duitse politici plaatsten vraagtekens bij voortzetting Stabiliteitspact (en)

As Germany is set to break the EU's budget rules for a fourth year in a row, the leader of the governing social democrats Franz Müntefering has now suggested the country might ignore these rules altogether.

Speaking at a party conference in Berlin yesterday (11 May), Mr Müntefering said that the budget deficit ceiling of three percent of gross domestic product as laid down in the EU stability pact - the rules underpinning the euro currency - was less important than investing in research and education.

He stated that the EU "must decide which three percent goal was more important: the three percent we want to spend on research and education by 2010, or the three percent budget deficit limit."

He added that at the moment it was not possible to harmonise these two goals.

The EU's goal of 3 percent spending on research and education is part of the so-called Lisbon Agenda, which aims to make Europe the most competitive economy in the world by 2010.

"I personally find the 3 percent goal for research and development more important", he said in comments to Financial Times Deutschland.

"Gravedigger of a stable euro"

Conservative German opposition leaders reacted furiously to Mr Müntefering's comments.

The secretary general of the Bavarian CSU said that Mr Müntefering was the "gravedigger of a stable euro".

The German Chancellor Gerhard Schröder refused to comment on Mr Müntefering's remarks.

Mr Müntefering's comments come as the German Finance Minister Hans Eichel admitted last week that it could "not be ruled out" that Europe's biggest country would again break the stability pact in 2005 - for the forth year running.

And the European Commissioner for Monetary Affairs Joaquin Almunia said yesterday that he was "convinced" that Mr Eichel would live up to his obligations.

However, Mr Eichel is under heavy pressure from some ministers in the German cabinet, who fear that further spending cuts, to comply with the stability pact, may harm economic recovery.