Merkel warns France over deficit

German chancellor Angela Merkel has insisted there can be no exceptions to European Union rules on national deficit targets – a clear message to France after it backed off from previous promises to bring down its budget overspend.

France admitted last month that its 2015 budget would shred pledges to bring the deficit below the EU limit of 3% of GDP within two years, and that its 2014 deficit would increase rather than fall.