EU Leaders OK Looser Budget Deficit Rules

European Union leaders endorsed looser budget deficit rules that should spare Germany and France from punishment, and backtracked on a plan to liberalize the market for services.

The leaders rubber-stamped a deal negotiated by their finance ministers Sunday under which countries would be given more time to bring excess deficits back under the EU limit and could claim exemption for all sorts of public spending.

The 25 leaders also agreed to ask the European Commission to rewrite a bill to throw open businesses to cross-border competition that threatens to derail a May 29 referendum on the EU constitution in France.