Sarkozy heading for EU showdown

Mr Sarkozy has already ruffled EU feathers with his views on the euro

France's president is heading for a showdown with European finance ministers at a meeting. Read original article.

• European Union
  
• French Presidency

Nicolas Sarkozy will ask the European Union (EU) to bend its fiscal rules to help avoid a French economic slowdown.

Mr Sarkozy wants to cut French taxes, a move that means France will breach a 3% budget deficit rule set by the EU.

It will be the first time a head of state has attended a meeting of finance ministers since Silvio Berlusconi went in 2004 to defend Italy's budget.

Mr Sarkozy, who became president eight weeks ago, has argued that France needs to cut taxes by 11bn euros ($15bn; £7.5bn) and reform higher education in order to tackle the country's spiralling unemployment problem.

Should he win the backing of EU finance ministers, then it would mean France failing to balance its books until 2012, two years later than a deadline set by the last government and the EU in April.

Mr Sarkozy is expected to meet with ministers later on Monday.

Deadline delay

However, critics say that the move will push France's public deficit above EU guidelines, just months after rising exports and a revival in the Eurozone economy helped it fall below the 3% limit.

French Prime Minister Francois Fillon confirmed last week that France wanted to delay meeting EU deficit rules until 2012.

The plan has already drawn opposition from Germany and Portugal.

"If it were to be confirmed that France is dropping out of the so-called midterm objectives that we agreed with France, with everyone...then there will be a problem," German Finance Minister Peer Steinbrueck said.

I voted for the euro, I believe in the euro. But in the end, currency is not a taboo subject Nicolas Sarkozy

European Central Bank chief Jean-Claude Trichet has also voiced concerns that a "certain member" of the EU is in favour of breaching EU budget rules.

However, book balancing is not the only issue that Mr Sarkozy is likely to clash with the EU about during the meeting in Brussels.

Last week, the French president broke with protocol to criticise the central bank for allowing the euro to appreciate too much. France claims the strong euro hurts its exports.

Over the past six years the currency has appreciated by 60% against the dollar.

"I voted for the euro, I believe in the euro. But in the end, currency is not a taboo subject. I want it to be of use to growth, of jobs for your children," he said during a speech in Strasbourg.

However the comments were seen as controversial as Germany and the central bank fought hard for monetary issues to remain free from political interference.