Germany has reached a tacit understanding with the European Commission that there would be no penalties if next year it exceeds the budget deficit limit in the stability pact, Germany's foreign minister has indicated.
"The Commission knows its responsibilities. When [it] believes we are on the right path, but must in the short term accept higher debts in order to spark economic growth, then I'm sure the Commission will come to an intelligent assessment," Mr Joschka Fischer was quoted as saying in today's the Financial Times.
He also said the United States should not lose sight of its post-Iraq responsibility of building a "new status quo" in the Middle East, even if this takes decades.
He said even though Germany opposed the war in Iraq, the rebuilding task would need to be based on a collective effort and "strategic dialogue" with Europe.