Machtsstrijd tussen kleine en grote landen om spelregels euro (en)

EUOBSERVER / BRUSSELS - As expected, EU finance ministers rubber-stamped last-night's decision to postpone any measures against France until the end of November.

But behind this decision, a real political battle is developing between smaller countries - led by Austria and the Netherlands - and larger countries - with France and Germany at the fore.

Austrian finance minister Karl-Heinz Grasser today emphasised the politics behind the economic decision.

"It's a question of how the big countries are treated and how the small countries are treated", he said.

"Countries that have done their homework are paying for the policies of France and Germany".

"I don't want Austrian taxpayers to be paying for that", he added.

A pact is a pact

Mr Grasser emphasised that the rules as they stand must be applied to France and that Paris should not be let off the hook. "For me, a treaty is a treaty and a pact is a pact".

The Dutch finance minister, Gerrit Zalm again backed Mr Grasser. Refering to the extra year France has been given to bring its budget deficit below the EU's ceiling of three percent of GDP, Mr Zalm said, "I believe in the resolution of Amsterdam which says there must be a strict and timely interpretation of the pact. 2005 is neither strict nor timely".

Additional measures

French finance minister, Francis Mer - the man at the centre of the storm - was perhaps the calmest of all today. He confirmed that France would be presenting "additional measures" to comply with the Commission's demands.

However, he could not give more concrete details about what these measures would be. Some media reports have suggested that France might cancel a public holiday to find more funds. Mr Mer refused to confirm this in today's media briefing.

Battle will be rejoined at the next meeting of EU finance ministers beginning 24 November. By this time, France will have set out its proposals and no doubt Austria and the Netherlands will have hardened their position.

It promises to be a very stormy meeting.