Germany and UK back tough EU budget deficit rules

A group of countries including Germany and the UK have thrown their weight behind an EU proposal to fine member states for failing to cut their budget deficits.

European Commission president José Manuel Barroso (pictured) is set to unveil a proposal on Wednesday requiring nations with public debts exceeding 60% of GDP to reduce the excess by 5% each year for three years or face a fine, reports the Financial Times. But in proposals set out in a letter to all 27 EU members, German finance minister Wolfgang Schäuble goes further and suggests nations repeatedly over-shooting the deficit limits should have EU development funding and voting rights suspended. According to European officials, a bloc of countries led by Germany, and including the UK ...