Wednesday, February 25, 2015

Budget Deficit: France gets more time to save money – SPIEGEL ONLINE

Budget Deficit: France gets more time to save money – SPIEGEL ONLINE

Brussels – Actually, this year would have to be concluded by 2015 France had got time to clean up its budget and meet the EU deficit limit of three percent of economic output. Now get the deficit sinners in Paris once more time to save. The second-largest economy in the euro zone must comply with the deficit ceiling until 2017 said the Vice-President of the European Commission, Valdis Dombrovskis, on Wednesday in Brussels. But

Economic and Monetary Affairs Commissioner Pierre Moscovici said that France had until April to submit an “ambitious national reform program” to reduce its deficit. Moreover, you should with additional spending cuts this year, the structural deficit, the economy influences hides can be lowered by 0.2 percent. The Commission intends to examine in three months whether the government responding to, otherwise face penalties.

The European Commission’s decision was made in the course of the analysis of the economic policies of the EU member states. This had to ensure submit their draft budgets for the current year. The Commission had explicitly France, Italy and Belgium set a deadline of March to bring their national budgets in order.

The case of France was identified as a particularly sensitive issue. The country had already given more time to press its excessive deficit twice. Theoretically, the European Commission could impose fines in the billions for breach of the deficit targets. The government in Paris has achieved a deficit of less than three percent since 2001 only in the years 2006 and 2007.

The European Commission also announced that it would initiate against Italy and Belgium no disciplinary action for their growing ends deficits in the budget. Italy’s public debt has continued to increase every year since 2008 and now stands at 133 percent of economic output – is allowed with 60 percent less than half.


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