MNI BRIEF: France, Germany Say To Reach Fiscal Deal Tuesday

Finance ministers of France and Germany told journalists at a news conference that they will resolve their remaining differences on a new EU fiscal rules regime in bilateral talks in Paris on Tuesday night. (See MNI: France, Germany Far Apart Ahead Of Fiscal Rules Talks)

The main issue between the countries concerns the speed at which EU member states in excess of limits achieve a budget deficit of 1.5% of GDP over the course of a four- to-seven-year fiscal adjustment programme. The last compromise proposal suggested an annual deficit reduction of 0.3% of GDP or 0.2% depending on whether the adjustment period was over four or seven years.

EU finance ministers are due to hold a video conference Wednesday afternoon to resolve remaining stumbling blocks to a deal.