Schröder's reform plans meet opposition

Extensive proposals put forward by German Chancellor Gerhard Schröder to reform the euro rules met opposition on Monday (17 January).

The Bundesbank and the German business federation (BDI) reacted angrily to the chancellor's proposals which aim at reducing the European Commission's power to impose fiscal discipline in member states.

The Bundesbank said the proposals would mean a "de facto" abandonment of the rule in the pact saying that member states may not run budget deficits o...