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28 November 2014

Euractiv: France, Italy, Belgium promise reform to avoid sanctions


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The countries have sent letters to the European Commission pledging structural reforms and possible extra fiscal steps to buy time before a ruling on whether their budget policies break EU rules.


France, which is already under an EU disciplinary procedure for running a budget deficit that is way above the EU ceiling of 3% of GDP, is facing a fine of up to €4.2 billion if by March the Commission decides that it has not taken steps agreed with EU finance ministers to consolidate its finances.

Italy and Belgium do not face fines yet, but could be put under the EU's disciplinary procedure for failing to tackle their high and rising public debt. The Commission will review the progress of Paris, Rome and Brussels in early March.

European Commission Vice President Valdis Dombrovskis and Pierre Moscovici told a press conference that the letters from the three countries outlined their commitment to structural reforms to strengthen their competitiveness, the internal market, and the labour market.

In the case of France the letter also pledged the country would deliver the necessary fiscal effort to return to a deficit below 3% of GDP, and in the case of Italy and Belgium, to address their debt developments, Dombrovskis said.

The Commission will be able to assess the progress of all three in the spring.

Full article on Euractiv



© EURACTIV


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