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The head of Germany’s central bank is warning the eurozone crisis is not over and governments must tackle the roots of their troubles with reforms – pointing the finger particularly at Italy, Cyprus and France.
He spoke on the day the French president admitted Paris’ deficit will probably be much higher than promised: “I believe that France has a particular responsibility to make clear that the new rules that we agreed in the crisis – and one of them is the strengthened stability and growth pact – that those new rules are strictly applied; and the first time these rules are applied, we don’t look for an escape route from the bindingness of these rules.”
Jens Weidmann said France’s reform course “seems to have floundered” while President Francois Hollande said that due to weaker-than-expected growth the country’s public deficit will probably come in at 3.7 percent of economic output this year.
Under the stability and growth pact it is supposed to be three percent.