FRANCE looks set to get away with breaking the euro rules as EU finance ministers agreed to postpone a decision on the issue.

Finance Minister Charlie McCreevy has said it was unrealistic to expect France to cut its budget deficit by 1.0% of Gross Domestic Product next year.

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.

At least 16 people were injured today after two explosions rocked central Nice.

EU finance ministers told France today to work harder to slash its budget deficit by 2004 but set no reduction target for this year.

WASHINGTON was last night locked in a transatlantic war of words over the ever-increasing likelihood of war with Iraq.

In one outburst after another, French and German ministers lashed out at the US defence secretary today with one even evoking a four-letter word, in the clearest sign yet the Iraqi crisis has split the Atlantic alliance.

France was tonight ordered by the rest of the EU to get its economy in order - or risk the credibility of the single currency.

French Finance Minister Francis Mer said the future privatisation of Electricite de France will be advantageous for the utility company, as it will keep it from running in to problems with the EU's anti-competition legislation.

THE International Monetary Fund (IMF) has warned that the recovery in Europe's economy will take longer than expected.

Prime Minister Jean-Pierre Raffarin tonight named France’s first centre-right Cabinet in five years, selecting a veteran diplomat to lead the Foreign Ministry and for the first time a woman as head of defence.