France not to meet EU deficit deadline

France has announced it will not meet a deadline set by the European Union (EU) to cut its fiscal deficit, Press TV reports.

France will not meet the EU’s arbitrary three-percent budget deficit rule by the previously defined 2015 deadline, Paris has announced.

The unilateral French decision appears certain to upset Brussels.

The announcement came just hours after Pierre Moscovici, a former French finance minister, was appointed EU Economics Commissioner, with power over member states’ budgets.

France says the delay was forced by a simple lack of funds.

Paris, meanwhile, has slashed social services and reduced taxes on the rich, which has resulted in zero economic growth, reduced tax receipts and possible deflation.

Southern Europe has been waiting for President Francois Hollande to lead a fight against austerity, and the move should also improve his record-low popularity at home.

The EU could retaliate against France by withholding funds or levying fines.

This is while France routinely gives more to the EU than it receives. In 2012, for instance, the country contributed 18 billion euros to the EU’s budget, but only got 13 billion of it back.

Analysts say Paris could easily forego the funds if it meant saving its economy.

MFB/HJL/HMV