Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

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: 16 July 2024, 16:49

» Published: 19 June 2024

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

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
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange rises after interest rate cut
1 MIN READ

Stockholm Stock Exchange rises after interest rate cut

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected

Inflation Expectations Fall
1 MIN READ

Inflation Expectations Fall