EU to Show Flexibility on Budget-Deficit Rules, Rehn Says

European Union Economic and Monetary Affairs Commissioner Olli Rehn indicated the EU would show flexibility in enforcing the bloc’s deficit rules as nations across the region struggle to spur growth as they cut debt.

With economies from Spain to the Netherlands sliding into recession, elections tomorrow in France and Greece may highlight concerns that German-led budget cuts aimed at taming the debt crisis could falter. Francois Hollande, the frontrunner in France’s presidential race, has called for more focus on growth in the region’s fiscal pact, while polls in Greece show many voters favor anti-bailout groups promising an end to austerity.