France off the hook on budget deficit[fr][de] 

On 30 January 2007, European finance ministers agreed to end disciplinary action against France after it managed to bring down its public deficit to 2.9% in 2005 and to 2.7% in 2006. 

This marks quite a turnover for France; in 2004, along with Germany, the country succeeded in forcing the EU to relax its strict eurozone rules, allowing both member states to continue overspending. 

"This is an important day, we have managed to put France back on track," said French Finance Minister Thierry Breton, who attributed much of this success to himself. "Reducing the debt has been a major part of my economic policy," he said, adding: "Ever since my first day in Bercy, I have been working towards this. I thought it inconceivable that France should not respect its commitments." 

Economic and Financial Affairs Commissioner Joaquín Almunia welcomed France's efforts, especially with the budgetary pressures usually associated with a pre-electoral period, adding that the previous inability of the eurozone's two largest economies, France and Germany, to comply with the stability and growth pact had been "a big problem". 

But, he cautioned that it was too soon for France to relax its efforts, saying that it should aim to reduce its deficit by at least 0.5% per annum if it wants its overall government debt to drop below the 60% limit in the next few years. 

Germany, which has also made serious efforts to bring its deficit in line with EU limits, could get the all-clear in the next few months.