European Central Bank Chief Economist Otmar Issing was quoted on Friday urging European Union governments to strictly apply the bloc's reformed rules on budget deficits in the cases of Germany, France and Greece.

"The deficit procedures in the three cases of Germany, France and Greece are the litmus test for the reformed (Stability and Growth) Pact," Issing told Boersen Zeitung newspaper in an interview, according to excerpts released in advance of publication on Saturday.

The EU's executive is due in January to relaunch disciplinary proceedings against Germany for breaking the EU's 3 percent of gross domestic product (GDP) limit on budget deficits for four years in a row.

Issing told Boersen Zeitung: "Any breaches of the spirit of the Pact should be as politically expensive as possible."

Copyright Reuters, 2005