Barroso: EU budget rules are 'adaptable'

The European Commission has indicated it is prepared to give struggling countries some leeway to bring their debt back in line with EU rules but continues to insist that member state cannot spend their way out their problems.

The issue is central to the EU's dance with the markets as the commission tries to find a balance between being credible with nervous investors by enforcing the rules underpinning the euro, while not pushing countries into a downward spiral of debt-reduction measur...