BRUSSELS The European Commission issued on Wednesday a further period of two years to France to bring its public deficit to the objectives of the single currency below 3% of GDP, is say in 2017, in an election year.
“We decided to propose a new recommendation to France on how to treat excessive deficit and set a new deadline for reducing it to less than 3%, ie in 2017, “said Vice President of the Commission, Valdis Dombrovskis, in a press conference.
This is the third time that France gets a new term bring its public deficit to European standards.
France hoped for a further period of three years until 2018, thereby boosting measures to avoid in an election year.
The French government forecast deficit of 4.1% in 2015, instead of the 3% initially agreed, and back below 3% only in 2017.
Brussels had until March to France, Italy and Belgium to adapt, through reforms and cuts, budget targets set by the Stability Pact and European growth, which sets a deficit of up to 3% of GDP and public debt at a maximum of 60% of its GDP.
This implies that if not corrected developments the Commission could take any “measures under the excessive deficit procedure”.
In theory, the Commission may financially punish countries that are not adapt to the rules.
1-France, the second largest economy in the euro zone was the most emblematic. Already obtained postpone deadlines twice during President Nicolas Sarkozy and during the current term of François Hollande.
2- The Committee hopes that France present in April, “a national program of ambitious reforms and more detailed “to help reduce the deficit, said Commissioner for Economic Affairs, Pierre Moscovici, he recognized as” steps in the right direction “plan reforms already introduced Paris.
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