European Central Bank council member Mr Yves Mersch has urged fiscal discipline among European Union candidate countries and existing members.
Mr Mersch, addressing a Financial Markets Association (ACI) conference in Luxembourg, noted on average fiscal deficits in candidate countries widened last year and that monetary policy must be supported by adequate fiscal policy.
"This is not only true for accession countries but also for some European Union members," he said, without naming any country.
French President Jacques Chirac said in his recent electoral campaign that targets for balancing budgets in the euro zone could be pushed back but has since tempered that stance.
Mr Mersch, who is also Luxembourg's central bank governor, said accession countries had made progress on reducing inflation and average inflation among them was expected to be around six to seven percent this year.
"This is encouraging and ought to be pursued but challenges remain and are likely to put pressure on prices," he said, citing a slide in fiscal policy and effects from liberalised markets, as well as high oil prices.
Up to 10 countries mostly from eastern Europe are negotiating to join the EU by 2004.
Hungary, the Czech Republic and Poland are frontrunners to join the euro possibly even as early as 2006 but Mr Mersch noted there was some doubt about a key criterion of central bank independence from some quarters.
"There are mixed signals from Poland and the Czech Republic," he said.