The dispute around France's budget deficit continues to make waves. For the first time since the euro crisis, the European Commission could reject the draft budget of a major member state and ask Paris to make modifications. Meanwhile, the EU's approach is also changing, as it attempts to interpret the Stability and Growth Pact in an eminently political manner. The end result could be a new deal that would revolutionise economic governance in the eurozone.
The first move came from…