Merkel Gives Hollande Show of Support on Budget-Cut Delay
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German Chancellor Angela Merkel signaled support for a European Union plan to give France two extra years to bring its budget deficit within the EU limit, showing the renewed strength of German-French political ties.
The European Commission last week proposed to let France extend until 2017 its run of deficits exceeding the EU’s cap of 3 percent of gross domestic product. The plan, which needs the approval of euro-area finance ministers, would spare French President Francois Hollande the threat of sanctions against his government. France has exceeded the legal limit since 2008.