The French draft budget could be retoqué by Brussels – The Point

The French draft budget could be retoqué by Brussels – The Point

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France risks being forced by the European Commission to revise its draft budget 2015, which expects net slippage in public finances, said Friday an EU source told AFP. “The bill will be introduced in Finance” by 15 October at the European Commission. “There is a high probability for it to be rejected, which will heighten tensions between France and Germany,” he told the source, confirming a report in Figaro .

“What happened there like the ‘atomic bomb’ in the confrontation between Paris and Brussels now seems plausible: in the last days of his term, on October 31 at the latest, the Commission Barroso could return to correction Hollande its draft budget law, “said the newspaper Friday.

The French government on Wednesday presented its draft budget for 2015, which provides a very slight decrease in the budget deficit, 4.3% of GDP from 4.4% this year. It should be reduced to 3.8% in 2016 and 2.8% in 2017, returning under the limit set by Brussels two years after the due date.

“Exceptional circumstances”

Since last year, the European Commission has a say on the budgets of countries in the euro area, and may require changes if they do not meet the deficit targets or economic recommendations to States in the spring. If the Commission finds serious deficiencies, it may ask the Parliament of the country concerned to submit a revised draft budget. Its main criterion is to judge whether the text reflects the country’s efforts on the path of deficit reduction.

pushing to 2017 instead of 2015, its goal of reducing the deficit below 3%, France is exposed in theory to financial sanctions unless it gets a new deadline. Paris wants to highlight “exceptional circumstances” to justify this slippage in public finances, but does not seem to have the support of its European partners, with the exception of Italy, which is leading the anti-austerity revolt in Europe.

“I do not think anyone has the right to treat other countries like schoolchildren”, said Friday the head of the Italian government, Matteo Renzi. “I prefer a France with (President Francois) and Holland (PM Manual) Valls and 4.4% deficit rather than Marine Le Pen,” said he added. The French, German and Italian leaders meet in Milan on Wednesday for a summit on employment, especially for young people.

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