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France, Germany, Italy, Portugal and Greece all pledged to keep their 2005 budget deficits under the limit set by the EU's Stability and Growth Pact, the Netherlands' finance minister said on Thursday.
Gerrit Zalm said the 12 euro zone finance ministers also had discussed Dutch efforts to bring the budget deficit back down below the EU limit of 3 percent of gross domestic product in 2005 after breaching the cap in 2003.
"The measures announced by the Dutch government to bring the deficit below three percent in 2005 were judged sufficient," Zalm told a news conference, adding this view would be also have to be confirmed by all 25 European Union finance ministers later on Thursday.
The ministers discussed the budgets of five countries that either have breached the deficit limit or are at risk of exceeding the limit.
"All the countries involved, without any exception, reconfirmed their commitment to stay within the 3 percent limit for 2005," Zalm said, adding:
"Ministers also recognised that growing economic momentum in Europe is a good possibility to actively consolidate public finances."
Greece's budget deficit data - which have been revised sharply upwards - were also examined and will be further discussed later on Thursday, Zalm said.

Copyright Reuters, 2004

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