BRUSSELS, Belgium (AP) — The European Union’s head office decided yesterday to take finance ministers to court for letting Germany and France violate budget rules.
A sharply divided European Commission took the unprecedented move despite warnings about negative repercussions for the 15-nation bloc. It is still struggling to revive a sluggish economy and smarting from the political divide over Iraq and attempts to adopt a new constitution.
Germany called the legal challenge “hard to comprehend,” arguing it could slow European integration just as 10 new members are to join in May.
“Not least with a view to the tasks that face the European Union in the near future, it would be more helpful to aim for cooperation rather than confrontation,” German Finance Minister Hans Eichel said in Berlin.
French Prime Minister Jean-Pierre Raffarin also stood by the finance ministers’ decision as “clearly” legal and said he was “not worried about the outcome.”
But he added, “I don’t want a polemic; 2004 has to be a strong year for Europe.”
He spoke after meeting in Brussels with Belgian Prime Minister Guy Verhofstadt, who also criticized the commission’s move.
“I don’t think it’s a good thing we have a fight at a time we have to work together,” Mr. Verhofstadt said.
Commission officials insisted they had to act to preserve their role as guardian of the EU treaties, which are adopted unanimously by EU governments.
“I firmly believe that we are a community of law,” said European Commission President Romano Prodi.
The decision to mount a legal challenge was adopted “in that spirit,” he said.
The commission said it would ask the European Court of Justice for a fast-track ruling on whether finance ministers misapplied the treaty at their Nov. 25 meeting.
France and Germany used their combined clout then effectively to suspend the Commission’s proposal to rein in their excessive budget deficits — a process that would have led to budgetary reviews from Brussels and possibly heavy fines.
Instead, Paris and Berlin got off with making political commitments to come into line by 2005.
The Commission has come under fire for insisting on adherence to deficit caps despite weak growth in both France and Germany, which account for half of the euro-zone’s economic output.
“Rules are rules, and of course, one should try to make sure that the rules apply equally,” said European Parliament President Pat Cox.
“But when you are applying rules, you need also to apply common sense,” Mr. Cox said.
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