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Left-leaning EU leaders agree no change to budget pact - Gabriel

German Chancellor Angela Merkel talks to Economy Minister Sigmar Gabriel during a cabinet meeting at the Chancellery in Berlin, August 20, 2014. REUTERS/Fabrizio Bensch

PARIS (Reuters) - Left-leaning European national government leaders meeting in Paris agreed more needed to be done to boost growth in the bloc but that EU rules limiting budget deficits should not be overhauled, German Vice-Chancellor Sigmar Gabriel said. "The most important thing here today was that we were all of the strong conviction that European policies must concentrate more on growth and jobs," Gabriel told reporters after a meeting in Paris hosted by Francois Hollande ahead of Saturday's EU summit. "The flexibility of the stability and growth pact (on budgets) must be used. The pact must not be changed - there was also consensus on that today," he added of the talks, where Italy's Prime Minister Matteo Renzi was among those present. France's budget deficit is currently stuck above the upper limit of three percent of output permitted by the pact rules and Paris has acknowledged it will struggle to get to it below this threshold next year as promised. Hollande this week stepped up calls for the EU's budgetary rules to take into account what France sees as the "exceptional circumstances" of low growth and low inflation that could lead to a deflationary spiral. "We need a budgetary policy which can play an important role and take into account the economic cycle," he told French ambassadors on Thursday. "Are we in an exceptional circumstance now? Yes: stagnation – even if there is a recovery, it is too weak – and weak inflation. Some are talking about deflation, but we are not there yet." Hollande further called this week for a special meeting of leaders of the euro zone to be held soon to discuss budget and growth policy. Speaking after the meeting of left-leaning leaders in Paris, he said that if other euro zone countries agreed, such a gathering could take place directly after an already scheduled full EU summit in Rome on Oct. 6. (Reporting by Mark John and Gregory Blachier; Editing by Natalie Huet)