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EU states seek to ease budget rules over military spending: French minister
BRUSSELS (AFP) May 19, 2003
France, Germany, Italy and Belgium want to ease euro-zone budget rules to allow an increase in military spending without breaching the pact underpinning Europe's single currency, France's defence minister said Monday.

"A number of ministers said there was a blockage, a brake which comes from the stability pact, and they want this brake lifted," Michele Alliot-Marie told reporters.

Under the 1997 Stability and Growth Pact, euro-zone countries face disciplinary action if their public deficit exceeds three percent of gross domestic product (GDP).

Alliot-Marie said the idea, which she has supported for some time, was first brought up in talks Monday by her Italian counterpart Antonio Martino, who was then supported by his German and Belgian colleagues.

"The first mission of a state is to protect the life of its citizens," she added, speaking on the sidelines of a meeting of EU foreign and defence ministers.

She added however that EU ministers still had to be convinced of the argument, which has already been rejected in the past by the European Commission, the EU's executive.

British Defence Secretary Geoff Hoon, whose country is not in the euro zone but which is keen to get other EU states to boost their defence spending, said he would support such an initiative.

"It is important that we encourage other countries to spend more," said Britain, whose country is Europe's military heavyweight along with France.

"If ways have to be found of making their obligations under the stability pact rules change, then I can see the benefit of that from a defence perspective," he added.

"Whether the chancellor of the exchequer would entirely agree with that would be another issue, which may be for another day."

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