Italy, France hit back at Merkel (Amended)

Berlin

ITALY and France have expressed irritation with a call from Chancellor Angela Merkel for them to do more to bring their budgets into line with EU rules, telling the German leader to focus on her own economic woes instead of lecturing others.

In an interview with German daily Die Welt, Mrs Merkel had called on Italy and France to enact additional measures ahead of a March ruling by the European Commission on whether their budgets conform with the bloc's deficit and debt rules.

Unless further steps are taken by the new deadline, the Commission could fine France for falling short of its deficit-cutting obligations and put Italy under a disciplinary process because of i…