French Parliament approves deficit budget

The French budget deficit for next year was approved by the nation's parliament on Thursday.

The deficit-cutting budget proposed by the French President Francois Hollande still needs to be approved by the European Commission.

France has to cut its budget by €3.6-3.6bn next year in order to meet EU rules, after failing to meet a number of targets this year.

The European Commission will decide in March next year if France was successful in the implementation of reforms to improve the economy and fight high unemployment levels, otherwise sanctions will need to be applied.

Also on Thursday, Hollande is expected to tell UK Prime Minister David Cameron that he will block his request for a change to the EU treaty to include a new settlement for Britain in Europe.

A senior French government spokesperson told The Telegraph: “The price to keep Britain in Europe keeps getting higher and higher. It is now up to the UK to decide. We will not pay an extra price to keep the UK in the EU.”