France set to avoid censure over deficit

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

One of the EU's largest economies, France has refused to reduce its budget deficit and admits it will break the 3% barrier for three years in a row.

Under severe pressure from the European Commission, French Finance Minister Francis Mer yesterday outlined new measures to help reduce the deficit, mainly caused by tax cuts.