France challenges EU structural deficit targets

April 15, 2015 7:18 AM

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PARIS, April 15 (Reuters) - France will target smaller reductions in its structural budget deficit in 2016 and 2017 than called for by the European Commission in order to preserve economic growth, the government said on Wednesday.

Officials said the cuts sought by the EU executive on the structural deficit -- a measure that strips out the effects of the economic cycle -- were too high. The stance could lead to new friction between France and its euro zone peers after Paris won a two-year reprieve on its headline deficit.

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