Juncker appointed head of eurozone states

Luxembourg's Prime Minister Jean-Claude Juncker has today been appointed the first permanent president of Eu eurozone sates with…

Luxembourg's Prime Minister Jean-Claude Juncker has today been appointed the first permanent president of Eu eurozone sates with effect from January 2005.

The appointment puts him in the frontline of the battle to reform the controversial Stability and Growth Pact.

Eurozone central bankers stepped up their attacks on the plan to revamp the pact, which sets strict limits on budget deficits, saying greater flexibility could damage prosperity.

Finance ministers nevertheless began discussing reforms at a meeting in the Dutch resort of Scheveningen today.

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They appointed Mr Juncker as their chairman for two years in a bid to improve economic policy coordination between eurozone states.

Mr Juncker quickly to set out his stall as a supporter of budget discipline and price stability who is equally concerned about growth and jobs.

"We have to keep in mind that price stability is of paramount importance and we have to keep in mind that an improvement in the employment situation is of no less
importance," he said.