12/01/2006 (Agence Europe) - The British Treasury reacted strongly to recommendations from European Commissioner Joaquin Almunia to the ECOFIN Committee to establish the UK excessive budgetary deficit and to ask London to drop below the 3% ceiling set by the Stability and Growth Pact before the end of this financial year (see EUROPE 9107). A Treasury spokesman quote in the British Press said, “This year we expect to have a treaty deficit of 3%, falling to 2.7% next year and 1.5% by 2010. The government's projections are therefore fully consistent with a prudent interpretation of the stability and growth pact. (…) The UK continues to have the lowest average debts and deficits of any major European economy. (…) We make no apologies for investing in vital public services”.