German opposition condemns budget move

Leaders of Germany's opposition Christian Democrats (CDU) today criticised a decision by euro zone finance ministers to free …

Leaders of Germany's opposition Christian Democrats (CDU) today criticised a decision by euro
zone finance ministers to free themselves of the constraints of EU budget rules by suspending action against Germany and France.

"This is truly a black day for all of Europe and a black day for the euro," said Mr Friedrich Merz, the CDU's counterpart to Finance Minister Hans Eichel and a deputy parliamentary floor leader. He blamed Mr Eichel for the undermining the Stability Pact.

"He [Mr Eichel] is responsible for essentially carrying one of the most important sets of rules in Europe to the graveyard," Mr Merz said, referring to the Stability Pact. He said it was a setback for the euro's stability. He added that he feared the decision in Brussels would have a long-term effect
on interest rates and currency stability.

Mr Dietrich Austermann, a budget expert in parliament for the CDU, told German radio he was worried about the stability of the euro and criticised Mr Eichel for undermining the pact that Germany had insisted upon in the first place.

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"It's now created a difficult situation for monetary stability," Mr Austermann said.  He claimed Mr Eichel could have met the demands of the European Commission for further cuts in 2004.

"A finance minister not capable of saving those [small] amounts isn't worth the wages he's being paid," Mr Austermann said.

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