In the quarrel over budget discipline which has pitted the guardian of the EU treaties against states having difficulty with the experiment, the European Commission is gearing up to toughen deficit procedings against Germany. The top ponetary affairs official, Joaquin Almunia, is reacting to Berlin’s failure five years in a row to keep its deficit-to-GDP ratio below the required
three percent ceiling. Almunia is making a decision on what kind of action to take today.
The Germans are supposed to tell Brussels within four months how they are going to go about reining it in. Suffering from economic weakness, more than half of the EU’s 25 members have broken the Stability and Growth Pact.