May 19 (Bloomberg) -- The European Union won't take action against the U.K. for breaking deficit rules in 2003, the Financial Times said, citing an unidentified spokesman for Joaquin Almunia, the EU monetary affairs commissioner.

The European Commission said it agreed with U.K. Chancellor Gordon Brown's forecast that the deficit for 2004 will fall below the 3 percent of gross domestic product limit set by the EU, the FT said.

The EU decided to study Britain's economy after it breached deficit rules in 2003, the FT said. Recent U.K. growth will mean the EU won't be making recommendations based on the study, the FT said.

Almunia's spokesman said the U.K. had taken the necessary measures and that the EU expected its deficit ``to be below 3 per cent for this year,'' the FT said.

(Financial Times, 5-19)

To contact the reporter on this story: Svenja O'Donnell in London at sodonnell@bloomberg.net

Last Updated: May 19, 2004 17:35 EDT