EU May Sanction Germany Over Deficit

The European Commission will reconsider sanctions against Germany in November for violating budget deficit rules that have been on ice since last year according to German news Agency, DPA, citing EU sources. The issue arose as European finance ministers began meeting in Manchester Friday to discuss rising oil prices and combating terror networks. The German budget deficit has crossed the 3.0 level, the ceiling required by the Stability and Growth Pact, three years in a row. EU sources told DPA that the deficit will most likely be revised upward and could reach four percent this year. The German finance ministry criticized the report, saying in a statement that "there is no reason at the moment for speculation over a higher German deficit."