A fundamental review of the rules governing the euro, named as Stability and Growth Pact, would not add to its credibility, said European Commission (EC) President Jose Manuel Durao Barroso on Wednesday.

Addressing journalists after the new Commission's first meeting,Barroso said he does not "think that it would contribute to improving the credibility of the pact to bring about a fundamental review of the pact".

But he also said he would work with European Union (EU) member states to "work on the credibility" of the battered Pact, which was famously dubbed "stupid" by his predecessor Romano Prodi.

EU officials said that reforming the euro rules would be on the agenda of the March EU Council meeting, which will be attended by the heads of all EU governments.

The EC, the executive member of the EU, made proposals on reforming the Pact in September.

Some EU member states, especially Germany, are pushing for some types of expenditures - such as research spending - to be excluded from the deficit calculation.

The Stability and Growth Pact forbids member states from running a budget deficit above three percent of their gross domestic product (GDP), a limit that France and Germany - amongst others - have found impossible to adhere to for several years.

The rules were effectively suspended last November when Paris and Berlin persuaded other EU finance ministers to vote down the EC 's disciplinary procedure against them for breaching the limits set by the Pact.;

Source: Xinhua