France Failed to Meet its EU budget deficit target

France announced that they will not make the EU-designated budget deficit target next year, they can only aim for 3% of national output only in 2017.

French finance minister Michel Sapin said on Wednesday the budget deficit would only be reduced to 4.3% of gross domestic product in 2015 after a level of 4.4% this year, the latter also a big overshoot of earlier estimates and the first annual rise in the deficit for four years.

He blamed the slow rate of economic growth and low inflation, saying France demanded that the EU “collectively take into account” an economic situation “unprecedented in recent European history”.

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.