German Finance Minister Mr Hans Eichel and Dutch Finance Minister Mr Gerrit Zalm said today no changes were needed to the European Union's Stability and Growth Pact.
Mr Zalm told reporters in Berlin ahead of a meeting with Mr Eichel: "I don't think it's a matter of the content of the pact, but how to apply it in an upturn. Our common view is that in an upturn, we should use the rules of the pact to go into balance or surplus."
"But we don't need changes in the text of the pact for that," he added. Mr Eichel said he agreed with Mr Zalm's position.
Mr Zalm was one of the severest critics of France and Germany in recent months for repeatedly breaking EU budget rules.
Those countries look set to breach the EU's budget deficit limit of 3 per cent of gross domestic product, laid down in the pact, for a third successive year in 2004.
Mr Zalm, arch-advocate of European budgetary rigour, had previously suggested beefing up the Stability Pact with an extra rule to ensure budget discipline during economic upturns, so money can be saved to regulate budget deficits in harder times.
Mr Eichel has repeatedly said the pact is still alive despite a compromise plan last year freeing France and Germany from disciplinary action over their excessive budget deficits.
In December, he welcomed suggestions by European Commission President Romano Prodi for changes to the pact to find a new balance between fiscal stability and promoting growth.