France breaks 2015 deficit-cutting promise

reuters.com – 10/09/14
France announced on Wednesday it was breaking the latest in a long line of promises to European Union partners to cut its public deficit, conceding it now would take until 2017 to bring its finances in line with EU rules. The statement by Finance Minister Michel Sapin follows weeks of hints by Paris that weakness in the euro zone’s second-largest economy would prevent it bringing the deficit below the EU ceiling of 3 percent of output next year as promised.

Sapin insisted France was not seeking to change or suspend the rules but wanted the deteriorating outlook for growth and inflation this year and next to be taken into account. Paris has led calls for a more flexible interpretation of EU budget regulations along with Italy, but German Chancellor Angela Merkel has rejected any bending of the rules and said on Wednesday euro zone countries should stick to their commitments. Read More