Germany and the Netherlands have called for tougher measures to tackle European countries with budget deficits which exceed three percent.

Dutch Prime Minister Jan Peter Balkenende and German Chancellor Angela Merkel agreed to press for a tougher stance on the issue after a meeting in The Hague.

Greece is currently struggling to get a grip on its 15 percent budget deficit. The country faces huge problems as a result.

Chancellor Merkel says Greece has not asked for financial help. Prime Minister Balkenende declined to comment on the idea of a European Monetary Fund. He said the International Monetary Fund was the first place to turn to.

Chancellor Merkel also praised the Netherlands for its work in Afghanistan and said she regretted the fact that Dutch troops were to be withdrawn from the Province of Uruzgan.

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