Brussels admonishes France over deficit as election nears – Europe live
Country is among seven that could face fines as it heads for high-stakes vote this monthWhat has the European Commission concluded today?On France, the Commission said:The government deficit has been above 3% of GDP since 2020; it decreased from 6.6% of GDP in 2021 to 4.8% of GDP in 2022, before increasing to 5.5% in 2023. It is projected to decline to 5.3% in 2024 and 5.0% of GDP in 2025.Government debt decreased from 113.0% of GDP at the end of 2021 to 111.9% at the end of 2022 and further to 110.6% at the end of 2023. It is projected to increase to 112.4% and to 113.8% at the end of 2024 and 2025, respectively.According to the Commission’s forecast, the government deficits in Belgium, Estonia, France, Italy, Hungary, Malta, Poland, and Slovakia are projected to exceed 3% of GDP in 2025. Therefore, the deficits in excess of the reference value are assessed to be not temporary for Belgium, Estonia, France, Italy, Hungary, Malta, Poland, and Slovakia.Differently, the government deficits in Czechia, Spain, Slovenia and Finland are presently projected not to exceed the reference value in 2025, and therefore the excess deficits are assessed as temporary.The deficit criterion is fulfilled if the general government deficit for the previous year (2023) and planned deficit for the current year (2024) do not exceed 3% of GDP. If either does, the Commission examines whether the deficit ratio has declined substantially and continuously and comes close to the reference value. It also examines whether the deficit in excess over the reference value is exceptional and temporary, and remains close to the reference value.Relevant factors are to be considered by the Commission and the Council in the steps leading to the decision on the existence of an excessive deficit, if either i) the government debt does not exceed 60% of GDP, or ii) if the debt exceeds 60% of GDP, but the deficit is close to 3% of GDP and the excess over it is temporary. Continue reading...
Country is among seven that could face fines as it heads for high-stakes vote this month
What has the European Commission concluded today?
On France, the Commission said:
The government deficit has been above 3% of GDP since 2020; it decreased from 6.6% of GDP in 2021 to 4.8% of GDP in 2022, before increasing to 5.5% in 2023. It is projected to decline to 5.3% in 2024 and 5.0% of GDP in 2025.
Government debt decreased from 113.0% of GDP at the end of 2021 to 111.9% at the end of 2022 and further to 110.6% at the end of 2023. It is projected to increase to 112.4% and to 113.8% at the end of 2024 and 2025, respectively.
According to the Commission’s forecast, the government deficits in Belgium, Estonia, France, Italy, Hungary, Malta, Poland, and Slovakia are projected to exceed 3% of GDP in 2025. Therefore, the deficits in excess of the reference value are assessed to be not temporary for Belgium, Estonia, France, Italy, Hungary, Malta, Poland, and Slovakia.
Differently, the government deficits in Czechia, Spain, Slovenia and Finland are presently projected not to exceed the reference value in 2025, and therefore the excess deficits are assessed as temporary.
The deficit criterion is fulfilled if the general government deficit for the previous year (2023) and planned deficit for the current year (2024) do not exceed 3% of GDP. If either does, the Commission examines whether the deficit ratio has declined substantially and continuously and comes close to the reference value. It also examines whether the deficit in excess over the reference value is exceptional and temporary, and remains close to the reference value.
Relevant factors are to be considered by the Commission and the Council in the steps leading to the decision on the existence of an excessive deficit, if either i) the government debt does not exceed 60% of GDP, or ii) if the debt exceeds 60% of GDP, but the deficit is close to 3% of GDP and the excess over it is temporary. Continue reading...
