The deficits decision marks the closest thing yet to a setting a timetable for implementing so-called exit strategies to wind down fiscal stimulus plans aimed at alleviating the fallout from the gloabal economic crisis.

Twenty EU countries have already been slapped down by Brussels for breaching set annual limits -- three percent of gross domestic product -- with spiralling knock-on debts threatening a political as well as fiscal timebomb.

Last month in the Swedish city of Gothenburg, the EU ministers avoided fixing a set date for the withdrawal of tens of billions of euros pumped into their recession-hit economies since 2008.

The European Commission will decide what to do about deficit warnings already issued to transgressors in November.

Among the worst, the French are forecasting deficits running to 8.2 percent of GDP this year and 8.5 percent next year, compared to German predictions of 3.7 percent there.

The head of the 16 countries that use the euro, Luxembourg Prime Minister Jean-Claude Juncker, warned that such discrepancies could ruin agreement.

He said that if "major countries are stepping away from a policy of virtue, smaller countries, mainly those surrounding these countries, would have great difficulties" explaining why they should remain within EU rules.

"Substantial fiscal consolidation is required in order to halt and eventually reverse the increase in debt and restore sound fiscal positions," ministers conclusions read.

Deemed essential if a return to growth is to be worthwhile, they said early action "will contribute to foster potential output growth and debt reduction."

Greek Finance Minister Giorgios Papaconstantinou said "one third of the doubling has to do with the recession, one third with the over-expectation of revenues, and one third with statistic errors."

He cited the public deficit as nearing 12.5 percent, but said "the commission understands perfectly well that the last thing to do is to strangle recovery."

Ministers already fear faltering recovery amid currency pressures, with the core euro single currency rising but the dollar and Chinese yuan falling.

Also at the meeting on Tuesday, arguments broke out over funding the fight against global warming.

Nine countries led by Poland called for them only to be required to contribute on a "voluntary" basis to so-called 'fast-start' funding designed to help developing countries reduce harmful emissions between now and 2013.

Negotiators were seeking a compromise that would allow the EU to set targets for overall funding contributions in the period through to 2020.

The commission -- and Britain -- pegs the figure at 100 billion euros per year, but the Poles and the others were refusing to legitimise any number publicly before going into crunch UN negotiations in Copenhagen in December.

"If within Europe, we can't demonstrate that everybody makes a fair contribution, it's going to be very difficult to persuade the outside world to do their bit," said a London source going into the talks.

"It would be unfortunate if this was seen as a way of securing backdoor subsidies," he added.

Share This Article With Planet Earth

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Related Links
The Economy

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News