Hollande: ECB and Germany must do more to fight real deflationary risk

The ECB and Germany must do more to boost growth and fight a "real deflationary risk" in Europe, French president François Hollande has said.

Stepping up recent warnings that weak growth could make it difficult for the government to meet EU fiscal targets next year, Mr Hollande said weak inflation made it all the harder for France.

“Weak inflation too has negative fiscal consequences on revenues as well as on debt. A lot will depend on the level of the euro, which has weakened over the past few days but not enough,” Mr Hollande said in an interview with Le Monde. “The ECB must take all necessary measures to inject liquidity in the economy.”