Brussels, Nov 27: With legal action an option on the table, the European Commission met in emergency session today to see what it can do to salvage the rules meant to underpin the stability of the Euro currency. The meeting follows yesterday's contentious EU finance ministers meeting at which France and Germany were effectively allowed to spend their way out of an economic slump by ignoring budget rules that were written to protect the Euro's value.

Germany and France risked huge fines for exceeding the rule that their annual budget deficit cannot continue to exceed 3 percent. Both agreed to bring their deficits below the limit by 2005 but gave no ironclad guarantee.

EU spokesman Gerassimos Thomas said the 20-member EU executive - which opposed the deal struck by the finance ministers - would ``look at subsequent actions whatever they may be". The commissioners considered how they can continue to apply the so-called growth and stability pact that was suspended in a majority vote, led by France and Germany.

Only Spain, The Netherlands, Austria and Finland voted against.

Thomas said the commission may face "practical problems" in applying the Euro ground rules, now that they had been undermined.

Bureau Report