EU's commissioner for economic and monetary affairs, Olli Rehn, said the EU expected a deal on fiscal policy when G20 leaders meet in Canada this weekend.

The deal would be on how to quickly unwind fiscal measures used to bolster their economies.

[Olli Rehn, EU Commissioner for Economic and Monetary Affairs]:
''We should have quite good chances of agreeing on a common global framework for sustainable and stronger growth, including also a coordinated strategy, coordinated and, time wise, differentiated strategy of fiscal exits. We are not that far from each other. I think it should possible to agree on such framework for growth in the context of the Toronto summit.”

Following the financial and economic crisis, several indebted euro zone countries implemented austerity measures to tackle fiscal deficits and restore financial markets' confidence.             

The euro zone currency has weakened more than 14 percent against the dollar since the start of the year.             

Greece, Spain, Portugal, Italy, Germany and France have all announced measures to cut their national debt.

But there are concerns that cutting spending will threaten the prospects for growth.

Rehn said the risk of a double-dip recession stemming from European austerity measures was very small. 

[Olli Rehn, EU Commissioner for Economic and Monetary Affairs]:    
''In fact, the real economy is recovering. The economic recovery is in progress now. It is still gradual and moderate but it will be strengthened in the course of this year and it should have gained a rather strong momentum next year. This means that it makes full sense for Europe to start consolidation at the latest next year when the economy is on a sounder footing.''        

Rehn said France will need to do more to reduce public debts from 2011.  

[Olli Rehn, EU Commissioner for Economic and Monetary Affairs]:      
"Concerning this year France seems to be doing enough to meet its targets which are corresponding to the European targets but there is the clear need to substantiate measures in order to meet the deficit targets for 2011, 2012 and 2013.''          

France is forecasting its public deficit will hit eight percent of GDP this year, and is aiming to bring this figure down to the European Union's target of three percent by 2013.