Chancellor Angela Merkel's junior coalition partner remarked that Germany must not allow France to break the European Union's debt rules warning the   European Central Bank against buying up sovereign bonds in response to Italy's inconclusive election.  

The Socialist president of France announced that he would take on more debt than allowed must not lead to a breach of the fiscal pact as it would fail to bring its   budget deficit below an EU ceiling of 3 percent of economic output this year as it had previously hoped. Finance Minister Pierre Moscovici said France would ask its EU partners and the European Commission for an extra year to reach the 3 percent deficit goal.  

So in order to discourage France to break fiscal pact Germany urged the ECB against kicking off a new round of sovereign bond buying in response to last month's inconclusive Italian election that has unsettled financial markets.  

There is not a currency war yet, but a deliberate policy of pursuing cheap money would only lead once again to bubbles and focus must be strong euro. France and some other euro zone states fear that a strong euro will hurt their exporters and snuff out the growth they need to create jobs and restore their public finances. French President Fancois Hollande called last month for a midterm target for the euro exchange rate but ran into immediate opposition from Berlin.