Merkel says no need to change EU budget rules, flexible enough

BERLIN, June 18 Wed Jun 18, 2014 7:47am EDT

BERLIN, June 18 (Reuters) - German Chancellor Angela Merkel said on Wednesday she and Economy Minister Sigmar Gabriel agree there is no need to change the European Union's Stability and Growth pact as it already offers all the flexibility it needs.

Gabriel, leader of Merkel's Social Democrat (SPD) coalition partners, suggested this week that euro zone countries which carry out structural reforms should get more time to meet their fiscal goals, recalling that Germany took time to meet deficit targets while implementing tough reforms of its own.

Merkel said she had spoken with Gabriel, adding: "We agree that we don't need any changes to the pact." (Reporting by Andreas Rinke; Writing by Alexandra Hudson; Editing by Stephen Brown)

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