Feb. 23 (Bloomberg) -- European Central Bank council member Guy Quaden said European Union leaders should treat with ``extreme caution'' suggestions from the three biggest economies using the euro that certain expenditures be excluded from budget deficits.

``The rules must be clear, comprehensible and applicable to all countries without distinction,'' Quaden, who is also head of the Belgian central bank, said at a press conference in Brussels. This should apply to ``the big countries in particular.''

Germany, France and Italy, which account for more than two- thirds of the 12-nation euro region's $10 trillion economy, are among countries pushing for items such as aid and defense spending to be taken into account when excusing excessive deficits.

``If you accumulate this kind of specificities and this kind of exemptions, the stability and growth pact will concern only the wages of civil servants,'' Quaden said.

European governments on Feb. 17 neared a consensus to be more lenient on countries that overstep the limit of 3 percent of gross domestic product, a benchmark that Germany and France have missed for the past three years and Italy risks going over this year.

Central bankers oppose loosening the budget stability pact, saying wider deficits may push up interest rates and hinder economic growth, which slowed to 0.2 percent in the fourth quarter, the weakest pace in more than a year.

EU finance ministers will meet on March 7-8 to set conditions in which euro nations' deficits would be allowed to exceed the target. Quaden's comments, made at the Belgian central bank's annual press conference Feb. 21, were embargoed until today.

To contact the reporter on this story: Meera Louis in Brussels Mlouis1@bloomberg.net.

Last Updated: February 22, 2005 18:00 EST