Read the text below in order to answer questionUnpicking the fiscal straitjacket Never has a straitjacket seemed so ill-fitting or so insecure. The euro area's "stability and growth pact" was supposed to stop irresponsible member states from running excessive budget deficits, defined as 3% of GDP or more. Chief among the restraints was the threat of large fines if member governments breached the limit for three years in a row. For some time now, no one has seriously believed those restraints would hold. In the early hours of Tuesday November 25th, the euro's fiscal straitjacket finally came apart at the seams. The pact's fate was sealed over an extended dinner meeting of the euro area's 12 finance ministers. They chewed over the sorry fiscal record of the euro's two largest members, France and Germany. Both governments ran deficits of more than 3% of GDP last year and will do so again this year. Both expect to breach the limit for the third time in 2004. Earlier this year, the European Commission, which policies the pact, agreed to give both countries an extra year, until 2005, to bring their deficits back into line. But it also instructed them to revisit their budget plans for 2004 and make extra cuts. France was asked to cut its underlying, cyclically adjusted deficit by a full 1% of GDP, Germany by 0.8%. Both resisted.Nov 27th, 2003 The Economist Global AgendaAccording to the text, the euro pact
a) has been preventing excessive budget deficits.
b) has been devised by France and Germany.
c) aims at restraining the euro's economic growth.
d) has redressed the euro's fiscal balance.
e) sets parameters related to fiscal deficits.