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Hollande, Draghi agree on threat of deflation: Official

Published on Sep 2, 2014 3:05 AM

PARIS (Reuters) - French President Francois Hollande and European Central Bank chief Mario Draghi agreed on Monday that deflation and weak growth were threatening the European Union's economy, an official in the president's office said.

Mr Draghi called last week for greater emphasis on fiscal stimulus over austerity - comments that irritated German leaders but were welcomed in France because they hinted at a shift away from a current emphasis on budgetary austerity.

"I think the diagnosis is a shared one," an advisor to Mr Hollande told reporters after an hour-long meeting between the Socialist president and Mr Draghi at the Elysee presidential palace.

The two men shared the view that weak growth and a threat of deflation in the European Union were problems that needed to be addressed, the advisor added.

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