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Cypriot Banking Crisis (2013)

EU warns 3 countries over budget and indicates French leeway

The European Union warned Tuesday another three of the 19 countries that use the euro, including Italy, risk breaking the currency bloc's budget rules and hinted it could give France some leeway in the wake of the attacks in Paris.

Though the EU's executive Commission said no country's draft budget has been found to be seriously in breach of the rules, it said Italy, Austria and Lithuania risk overshooting deficit limits in 2016. It urged the countries to revise their spending plans.

Pierre Moscovici, the EU's top economy official, indicated France may get a sympathetic hearing at the Commission if the country's budget plans deteriorate in coming months in the wake of the...