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Germany, France Seek Eased Euro Deficit Rule Amid Austerity

Germany and France are seeking to ease the euro area’s deficit rules to reflect efforts by governments to fix their economies, German Economy Minister Sigmar Gabriel said.

Europe’s two biggest economies will present a proposal to the next European Commission to allow countries such as France and Italy to subtract the cost of economic reforms from the budget deficit, Gabriel told reporters after meeting French Economy Minister Arnaud Montebourg in Toulouse, France, today. Austerity has “failed,” he said.