Germany and France will tonight join forces in a last-ditch legal attempt to save themselves from the full impact of the European Union's budget rules

Germany and France will tonight join forces in a last-ditch legal attempt to save themselves from the full impact of the European Union's budget rules. Both countries want to stop the European Commission starting enforcement action against them under the EU's stability and growth pact, which could eventually lead to fines. The challenge has been driven by Gerhard Schröder, German chancellor, who fears a politically humiliating row with Brussels over his government's deficit - set to breach the pact's 3 per cent limit for the third year in a row in 2004. Germany and France, which is also set to break the rules for a third year in succession, hope they can use the prolonged economic slowdown as an excuse for an indefinite delay in the Commission starting the countdown to sanctions. Although few believe Germany would ever be fined, the prospect of Berlin taking economic instructions from Brussels, and being forced to make regular progress reports to the Commission, has proved too much for Mr Schröder. German government lawyers claim it would be possible to strike a deal where Berlin and Paris agreed to take further measures if the Commission agreed not to make binding policy recommendations.