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EC gives tentative green light to French and Italian budgets


EC gives tentative green light to French and Italian budgets

The European Commission has tentatively approved the state budgets of France and Italy.

The EU executive gained new powers to police eurozone budgets from member states last year.

Fresh savings announced by both governments have done enough – for now – to win the Commission’s support.

An in-depth opinion will be published later.

“Based on our assesment of the draft budget plans and our autumn forecast, it cannot be excluded that the Commission may need to adopt steps under the excessive deficit procedure for some member states.” said Jyrki Katainen, the EU Economic Affairs Commissioner.

Both Paris and Rome had been set for a bruising scrap with the EU executive.

EU spending rules agreed between the 28 member states say that a country’s budget deficit cannot be more than three percent of GDP.

But it will not be the team of outgoing Commission President José Manuel Barroso that will give the far-reaching verdict.

They will be replaced by Jean-Claude Juncker’s Commission on Saturday October 30.


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