EC calls truce in deficit battle
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The EC ends action against France and Germany for breaching eurozone deficit rules as the two members vow to cut their 2005 deficits.
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The European Union&#39;s executive office ended a three-year battle with France and Germany on Tuesday, dropping EU procedures against them after the two nations pledged to get their budget deficits back within EU limits next year.
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The European Commission said it had adopted a plan to adapt eurozone rules intended to control budget deficits in order to improve the way they work and their credibility.
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The United States and Europe temporarily headed off a multibillion-dollar trade dispute today by deferring World Trade Organization complaints.
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BRUSSELS  - The European Union wrestled with proposals to overhaul its ineffective budget rules but put off concrete action until January at the earliest in the face of big divisions.
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European Union finance ministers wrestled with a proposal to overhaul an ineffective set of budget rules, but faced with lingering differences they postponed concrete action until January at the earliest.
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The European Union's chief on Monday called for a halt to further expansion of the bloc after Romania and Bulgaria join, saying the EU had to resolve the stalemate over its proposed constitution before it could accept new members.
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The European Commission has signalled that it may suspend membership negotiations with candidate countries if they fail to meet tough EU criteria.
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European Union leaders headed for a  showdown on Thursday over efforts to overhaul the bloc&#39;s  creaking institutions, but chances of agreement appeared to be  rising after chief critic Poland softened its tone.
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The European Union told Italy, France and Germany &#151; the three biggest economies in the euro area &#151; Wednesday to do more to bring their budgets in balance as required by the rules of Europe's single currency.
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European Union finance ministers told Greece it had to take immediate steps to control its public deficit, which they said had consistently exceeded eurozone regulations.
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Defenders of financial rigour in the European Union attacked German calls for a radical dilution of the eurozone's budget rules at a lively meeting of EU finance chiefs.
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The European Parliament has called on the EU to halt direct budgetary aid to the Kenyan government.
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Sharp differences appeared Wednesday between Germany and France after Chancellor Angela Merkel dismissed calls by French President Nicolas Sarkozy for a brake on the euro&#39;s rising value.
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EU finance ministers gather in the Netherlands Friday for informal talks likely dominated by efforts to agree on reforms to the long-strained budget rules underpinning the euro.
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The European Commission cut its growth forecast for 2005, saying record oil prices will damp global demand and warned that five of the 12 countries using the euro will post deficits at or above European limits next year.
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The EU commissioner for economic and monetary affairs, Joaquin Almunia, is seeking greater flexibility in the application of Europe's strict budget rules for countries with big public deficits, it was reported.