GERMAN Finance Minister Mr Theo Waigel has dismissed speculation that he had softened his stance on the budget deficit limit for countries wishing to take part in European Monetary Union (EMU).

Since February, Mr Waigel has backed off calling for a precise ceiling of 3 per cent of gross domestic product (GDP), preferring only to speak of 3 per cent.

But at a meeting of his Christian Social Union (CSU) party in Fuerth, Mr Waigel said the text of a motion on EMU spelling out a ceiling of 3 per cent had been agreed with him.

The European Union's Maastricht Treaty calls for nations to show a budget deficit no higher than a reference value of 3 per cent of GDP if they want to join economic and monetary union (EMU), scheduled to start in 1999.

"We stand behind strict fulfilment of the entry criteria laid down in the Maastricht Treaty," Mr Waigel told delegates at the meeting.