EU nations push for deficit cuts to tame crisis

BRUSSELS: EU nations are pushing for deep deficit cuts at a meeting Tuesday to restore confidence in European governments' ability to handle the debt crisis.

Investors fear that European countries will not be able to reduce mounting debt and avoid years of slow economic growth despite a $1 trillion rescue package to help eurozone nations avoid default.

EU Economy Commissioner Olli Rehn told reporters on Tuesday that finance ministers would talk about tougher budget rules because ``it is now very important to reinforce confidence in the euro economy.''

Anders Borg, Sweden's finance minister, called for new debt and deficit limits, saying a 2013 deadline for most countries to bring deficits to 3 per cent was ``not very ambitious.''