Brussels lets UK off the hook over budget deficit

The UK Finance Minister Gordon Brown has advised the European Commission that the UK's budget deficit for 2003-04 will be 3.3% above the Stability and Growth Pact's 3% ceiling. However, Pedro Solbes, European Commissioner for Economic and Monetary Affairs has told colleagues he does not intend to implement the procedure which would allow the European Union to instruct Mr Brown on how to manage the UK's finances. The Commission believes the UK's underlying economy is strong.