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EU places France under close watch over high deficits

Published on Mar 6, 2014 12:08 AM

BRUSSELS (AFP) - The European Commission on Wednesday placed France under close surveillance over its failure to rein in its deficit, warning that its recalcitrance could hamper Europe's economic recovery.

In a searing criticism of France's public accounts, the Commission said the eurozone's second biggest economy would miss its public deficit target for 2014 and 2015.

It stressed the "need for decisive action so as to reduce the risk of adverse effects on the functioning of the French economy and of the euro area".

The high deficit and debt levels "increase France's risk of exposure to financial market turbulence which would spill over to the real economy, but also to the rest of the euro area".

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