EU warns of deficits in Italy and France

Seven EU countries – including both France and Italy – risk fines for breaching the EU's budget rules. However, a return to the austerity policies of the 2010s is not promised.

» Updated:

» Published:

EU warns of deficits in Italy and France
Photo: Geert Vanden Wijngaert/AP/TT

Share this article

Seven EU countries – including both France and Italy – risk fines for breaching the EU's budget rules.

No return to the austerity policy of the 2010s is promised, however.

In the EU Commission's economic spring package on Wednesday, it is proposed that formal procedures be initiated against Belgium, France, Italy, Malta, Poland, Slovakia, and Hungary. Ultimately, the processes could lead to fines or other measures if the countries do not take action to reduce their budget deficits.

The measures come as EU countries last year agreed to leave the economic exception regime that has been in place since the coronavirus pandemic took hold in the spring of 2020. As a result, member states are once again required to strive for a national debt equivalent to a maximum of 60 per cent of GDP and not have budget deficits exceeding three per cent of GDP.

At the same time, a reform of the budget rules was nailed down this year to increase flexibility and take into account specific situations in the affected countries.

The process is, however, lengthy. Recommendations on what countries should do are not expected until autumn.

Economy Commissioner Paolo Gentiloni also stresses that it is not about going back to the criticised austerity policy that dominated after the euro crisis.

We are coming from nearly four years under general exception rules, and therefore, our economic and budget policy is entering a new cycle. This does not mean a return to normal, for we do not live in normal times – and even less a return to austerity, which would be a terrible mistake, says Gentiloni at a press conference in Brussels.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

France's Credit Rating Downgraded by Fitch

France's Credit Rating Downgraded by Fitch

Microsoft Gains Amid Mixed US Market

Microsoft Gains Amid Mixed US Market

FTC Investigates Google and Amazon Over Advertising Practices

FTC Investigates Google and Amazon Over Advertising Practices

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

ECB Officials Divided on Future Interest Rate Decisions

ECB Officials Divided on Future Interest Rate Decisions

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Microsoft to Remove Teams from Office Package in EU Agreement

Microsoft to Remove Teams from Office Package in EU Agreement

UK Economy Growth Stagnant in July as GDP Remains Unchanged

UK Economy Growth Stagnant in July as GDP Remains Unchanged

German Inflation Rises to 2.2 Percent in August

German Inflation Rises to 2.2 Percent in August

Global Stock Markets Rise Slightly Ahead of Expected US Rate Cut

Global Stock Markets Rise Slightly Ahead of Expected US Rate Cut

Insurance Guide: What to Know After Västernorrland Floods

Insurance Guide: What to Know After Västernorrland Floods

Asian Stock Markets Rise on Week's Last Trading Day

Asian Stock Markets Rise on Week's Last Trading Day

Trump Seeks Court Approval to Dismiss Fed Member Before Rate Decision

Trump Seeks Court Approval to Dismiss Fed Member Before Rate Decision

Warner Bros Discovery Surges on Wall Street Amid Paramount Bid Rumors

Warner Bros Discovery Surges on Wall Street Amid Paramount Bid Rumors

US Inflation Matches August Expectations

US Inflation Matches August Expectations

ECB Keeps Interest Rates Steady

ECB Keeps Interest Rates Steady