EU gives France more time to sort finances

EU officials insisted today that giving France more time to avoid punishment for overspending did not weaken budget rules underpinning the euro, despite warnings that they were sending the wrong signal on fiscal discipline.

“We serve the cause of credibility most when we are able to reach a common position,” said German Finance Minister Hans Eichel, who led the drive at an EU meeting in Brussels to postpone action against France for not meeting budget-cutting obligations.