By Anna Willard
PRAGUE, April 3 (Reuters) - Euro zone countries gave France and Spain until 2012 to bring their budget deficits below 3 percent of gross domestic product but granted Ireland until 2013 to cut its fiscal shortfall below the European Union ceiling.
Finance ministers from 16-nation bloc, who met in Prague on Friday, also said Greece must meet the goal next year.
"The Eurogroup has endorsed the Commission recommendations for the correction of the excessive deficit for Greece, Ireland, Spain and France," Economic and Monetary Affairs Commisioner Joaquin Almunia said at a press conference.
"The finance ministers of these four countries explicitly agreed on the need to implement these recommendations so as to start the consolidation of their fiscal positions."
He said Greece and Ireland must start clean up their public finances this year while France and Spain must start in 2010.
The countries now have 6 months to specify what measures they will take to reduce the deficits.
Eurogroup chairman Jean-Claude Juncker said it was important that countries did not "fight debt with debt".
Deficits and debt have ballooned as governments have pumped money into economies to cushion against the economic crisis.
EU rules say that a deficit above the limit should be cut the year after finance ministers declare it is excessive. This deadline can be extended to two years in special circumstances.
The Commission has said France, Spain and Ireland were all in special circumstances and gave them three to four years, sticking to the disciplinary steps required by EU law but has also agreed to be flexible about the deadlines.
But Greece has not been allowed to claim special circumstances and therefore must cut its deficit by next year.
France expects to have a budget deficit of 5.6 percent this year and 5.2 percent in 2010, falling below 3 percent only in 2012. The Commission is expecting Spain's budget gap to reach 6.2 percent this year and 5.7 percent in 2010.
Greece may have a deficit of only 3.7 percent this year and 4.2 percent next year, the Commission has forecast.
"We have to spend and it is exactly what our stimulus plans have provided for and on the other hand..we need to have cleaner public finances," she said, adding that France would meet the 2012 goal.
"The path between these two points is the game of 'timely targeted and temporary' for all the stimulus measures."
The Commission is expecting Ireland's shortfall to almost double to 11 percent this year and 13 percent in 2010, but it has said it was pleased with the measures being taken by Dublin.
"We are very happy with the way the Irish government has assumed their resonsiblities to start this strategy," said Almunia.
"We are looking forward to know the budgetary measures that will be announced in the coming days and we are cooperating with them trying to help as much as possible to try and ensure the success of these budgetary measures."