France may reduce deficit

THERE are signs France was prepared to respond to pressure from its fellow eurozone members and move towards reducing its proposed budget deficit for next year.

Finance ministers from the 12 euro countries devoted their meeting yesterday in Italy to discussing the problem posed by France’s intention to breach the 3% deficit contrary to the Stability Pact.

France has still not submitted its budget plans to the Commission as required but has said it will do so in the next few weeks.