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French parliament endorses new European fiscal discipline

12 October 2012 01:53 (UTC +04:00)

Baku-APA. The French parliament finally passed on Thursday a bill to ratify the European Union’s budget austerity discipline that forces eurozone governments to restore their financial stability or face sanctions, APA reports quoting Xinhua.

The French Senate voted 306 to 32 to approve the ratification of the Treaty on Stability, Coordination and Governance (TSCG) within the economic and monetary union.

Agreed in March by the former president Nicolas Sarkozy and 24 other European leaders, the EU fiscal pact obliges eurozone countries to trim their budget gaps or face sanctions.

The fiscal pact will enter into force on January 1, 2014 in a move to restore markets confidence and rebuild financial credibility of the European bloc where its largest economies such France were on hot seat.