EU drops punitive deficit action against France

18th January 2005, Comments 0 comments

BRUSSELS, Jan 18 (AFP) - European Union finance ministers agreed Tuesday to drop disciplinary action against France and Germany after concluding that the eurozone's two biggest economies will meet an EU deficit target this year.

BRUSSELS, Jan 18 (AFP) - European Union finance ministers agreed Tuesday to drop disciplinary action against France and Germany after concluding that the eurozone's two biggest economies will meet an EU deficit target this year.

The ministers endorsed the view expressed last month by the EU's executive commission that the heavyweight pair will soon bring their deficits under three percent of gross domestic product.

They concluded at talks here that action taken by the French and German authorities "is broadly consistent with a correction of the excessive deficit by 2005", according to a statement.

"The Council (of ministers) agrees with the commission conclusion that no further steps under the EDP (excessive deficit procedure) are necessary at this stage," it said.

In addition, each country reaffirmed its commitment "to take all necessary measures to bring its deficit below three percent of GDP (gross domestic product) in 2005 and keep it below three percent in 2006".

© AFP

Subject: French News

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