Leaders of the European Union on Thursday agreed on to allow greater leeway for fiscal discipline to states with great budget deficit.
European Union partners agreed to grant more flexibility to states with great budget deficit such as Spain, France and Italy before implementing any sanctions.
"Balancing productive public investment needs with fiscal discipline objectives" was emphasized at the summit.
"If we have tight budget policies, unemployment will rise. If our priority is to be our objective of growth, flexibility is a must for fiscal discipline," French President Francois Hollande said.
Prime Minister of Luxembourg Jean-Claude Juncker said, "I support disciplinary measures, however budget measures should not pose a risk facing growth."