European Union grants France two year deficit extension

European Union finance ministers have granted France an extra two years to bring its budget deficit below 3% of GDP, as mandated by EU regulations.

The move, which was widely expected, is the third extension France has been granted since 2009.

France’s budget deficit is expected to be 4.1% of GDP this year, as it struggles with high unemployment.

Critics have warned that the extensions undermine the EU’s market credibility.

In a statement announcing the extension, the ministers found “that extending the deadline for correcting the deficit was justified by the fiscal effort made by France since 2013, and by the current weak economic conditions and other factors.”

BBC

 

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam