The European Commission yesterday denied it planned changes to the stability pact that enforces budgetary discipline in the euro zone after Germany suggested there may be a need for adjustments.

European Commission spokeswoman Ms Kerstin Jorna declined direct comment on Thursday's remarks by German Finance Minister Mr Hans Eichel, who raised the prospect of changes to the pact.

But she said: "We are not planning any changes in the stability pact. We are continuing to work as before."

Mr Eichel's comments could deepen nervousness in financial markets over whether euro zone governments will maintain their commitment to the pact, now that economic growth is slowing.

The stability pact, which requires countries to aim to get budgets balanced or in surplus over an unspecified medium term, was the brainchild of his predecessor, Mr Theo Waigel.

However, speaking on Thursday in Riga, Mr Eichel suggested there may be a need to make adjustments in the pact.

"It was perhaps sensible at the time to agree to it, in light of the condition of the European finance policies back then," he said.

"But from an economic point of view it is of course of central importance that we really reach the (deficit target)."

Mr Eichel said it would be useful to focus more on spending targets rather than following rigid deficit cutting.

"In a budget you can plan spending but you cannot plan your income (from tax revenues).

"Germany stands fully committed to the agreements - without any ifs, ands or buts," he said.