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French leader Hollande with Germany's Merkel in Elysee palace (Photo: elysee.fr)

France offers new cuts to meet Brussels' demands

France and Italy outlined extra measures to cut their budget deficits on Monday as they backed away from a full scale confrontation with the European Commission.

French finance minister Michel Sapin announced new savings worth €3.6 billion in a letter to eurozone commissioner Jyrki Katainen.

The extra savings would come from "lower interest expenses as a result of falling interest rates throughout the summer, or a reduction in future contributions to the European Union Budget ann...

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