EU Concedes Politics Plays Into Euro Pact

[Wonk]

BRUSSELS, Belgium (AP)--The European Union's head office conceded Wednesday that politics, not just EU law, will be considered when it decides whether to take national governments to court for letting Germany and France off the hook for violating euro rules.

The European Commission, charged with upholding EU law, still has ``serious reservations about the legality'' of the decision by EU finance ministers on Nov. 25, chief spokesman Reijo Kemppinen told a news conference.

France and Germany, which account for roughly half of the euro-zone's economic output, wielded their combined clout to block the commission's recommendation to censure them for failing to rein in excessive budget deficits.

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Continuing the battle in court would add to the strain on the 15-nation bloc--increasingly split on issues ranging from Iraq to a new constitution--just as it prepares to take in 10 new members from eastern and southern Europe in May.

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