SNCM, which links Corsica with mainland, has told staff it will put company in receivership, a move which could help it escape EU aid ruling.
The European commissioner for economic and monetary affairs accepted revised French and Italian budget plans but warned of close scrutiny.
Finance minister tells Brussels an extra 3.6 billion euros will be cut from public spending next year, placing France 'in line with EU rules'.
Finance minister and president say changes can wait until 2016 but economy minister and prime minister say they want action 'in short term'.
Emmanuel Macron, who also promised to accelerate fiscal reforms at home, said 300 billion euro 'New Deal' would boost investment and growth.
Premier Manuel Valls said Berlin and Brussels had to be 'careful' about how they spoke to France and that Europe project was 'at risk'.
MEPs gasped when ex-finance minister told commissioner confirmation hearing that Paris had never broken EU budget rules.
Leaked memo says former finance minister Pierre Moscovici's powers in EU Commission will be shared with Latvian hardliner.
Ministers say borrowing will meet EU limits two years later than promised and that 'no further effort will be demanded of the French'.
Statistical agency INSEE says total national debt is 2.023 trillion euros which represents 95.1 percent of French GDP.
France’s Pierre Moscovici has been named as the new European Union commissioner for economic and monetary affairs in Brussels. At first glance it appears a clear-cut triumph for President François Hollande who has installed his former finance minister in a key economic post at the heart of the EU despite German opposition. It is also a sign that the new European Commission president Claude Juncker wants to display his independence from German chancellor Angela Merkel. But as Ludovic Lamant reports, Juncker has also shaken up the Commission's structure and placed two economic hawks alongside the French commissioner. Some observers believe their main role is to stop the French “social democrat” being too soft on member countries struggling to cut their deficits – and in particular France.
Just over half of French people polled want Britain to quit EU, with only 42 percent believing Brussels should take London's concerns into account.
Former French finance minister Pierre Moscovici will take up the important economic and monetary affairs portfolio despite some German misgivings.
French officials make no secret of the fact they are angling for a major economic portfolio for the politician recently reshuffled out of government.