Numbers game

Tuesday's meeting of EU ministers in Brussels is likely to focus on ways and means of cutting national budget deficits without jeopardizing a fragile economic recovery in parts of the bloc.

The EU's 27 member states also want to coordinate exits from crisis-related emergency measures in order to avoid distortion of competition.

Diplomats from the 16-nation Eurozone on Monday agreed to implement an economy drive no later than 2011, anticipating that economic growth would hit 1.5 percent by then.

Schaueble defends German position

Several EU countries, including Germany, are coming under growing pressure from the European Commission to tackle their excessive budget deficits.

German Finance Minister Wolfgang Schaeuble told a meeting of Eurozone's finance ministers on Monday evening that Berlin was still serious about tackling its national budget deficit, despite planned tax cuts in Germany.

Germany is one of several Eurozone countries whose national deficit exceeds three percent of its gross domestic product (GDP), which is the limit set by the European Union's Stability and Growth Pact. According to European Union estimates, the budget gap in Germany could reach up to five percent of its GDP next year.

Although Germany is far from the worst Stability and Growth Pact offenders - Greece's budget deficit is estimated at around 12 percent of its GDP, while Ireland's is pushing 15 percent - questions have been raised in the EU about how Germany plans to address the problem while at the same time cutting taxes.

The recently formed coalition government in Germany is planning 24 billion euros ($36 billion) in tax cuts to begin in 2011.

Reassurance from Schaeuble

At Monday's meeting in Brussels, Schaeuble assured the finance leaders that Germany would not have a problem reining in its budget deficit despite the tax cuts. Although Dutch Finance Minister Wouter Bos was critical, Schaueble gained a key ally in EU Economic and Monetary Affairs Commissioner Joaquin Almunia.

"Minister Schaeuble is fully committed to the implementation of the pact and understands how it should be implemented during these difficult times," Almunia said.

On Wednesday, the EU is expected to recommend to Germany that it bring its budget deficit to under three percent of its GDP by 2013.

mz/nk/AP/dpa/Reuters

Editor: Jennifer Abramsohn