BRUSSELS, March 22 (UPI) -- News that the European Union plans to loosen fiscal rules governing its members is provoking the alliance's central bank and top business leaders.
The EU is expected to back a deal Tuesday night to create a flexible new stability and growth pact in response to several members' apparent inability -- or unwillingness -- to hold budget deficits to 3 percent of gross domestic product, the Financial Times said Monday.
The European Central Bank responded to the proposed loosening of the growth and stability pact rule by saying it was "seriously concerned" about changes to the fiscal rules proposed by finance ministers Sunday night.
Also, the president of the German exporters' association accused Brussels of sacrificing long-term benefit to short-term gain.
"Our children and grandchildren will have to pay the price for the failure of politicians to look after the money they are trusted with," said Anton Borner, who also said the EU's move would make the pact "toothless."
Currently, the pact creates a deficit limit of 3 percent of gross domestic product for member nations.
