Former French fin min and now EU fin supremo expressing understandable patience with the French govt
- will reassess budget when it is clear what effect security spending is having
- commission will show full understanding for French security priorities
- EU rules have flexibility to allow states to respond to circumstances
- EU budget rules may be accused of rigidity but it has shown it can adapt to all kinds of situations
Earlier today French PM Valls had said that France would not be meeting its budget deficit requirements at this time
EU Commission has noted Italy, Lithuania, Austria, and Spain at risk of breaking EU budget rules with their 2016 plans
- French 2016 budget draft is broadly compliant but fiscal consolidation effort is too small
Meanwhile EURUSD is still kicking around 1.0665 EURGBP 0.7015 EURJPY 131.46 in a bit of a snooze-fest for the moment
