Brussels, 14/10/2014 (Agence Europe) - France and Italy are not the only states which need to make changes to their budgetary policy as a result of the economic climate, the French finance minister stressed, also referring to Finland, after the Eurogroup meeting on Monday 13 October.
Michel Sapin made no secret of the fact that the French budgetary texts (state expenditure, social security, multi-annual programming law) - which provide, amongst other things, for public deficit to be brought back under the 3% of GDP mark in 2017 instead of 2015 (see EUROPE 11170) - will have to be amended by the end of December in the framework of the parliamentary procedure and exchanges with the European level, which are expected to get heated.
Welcoming the suggestion of the president of the Eurogroup regarding the creation of a closer link between structural reforms on the one hand and investment and budgetary policy on the other (see other article), Sapin took the example of tax cuts granted to businesses to a total in excess of €10 billion a year. “Tax cuts of €12 billion in 2015 is a lot of points in not lowering the deficit”, he said, noting that his opposite numbers were all encouraging him to move in this direction and towards this kind of level of ambition. He went on to state that as regards cutting expenditure, the ambition of the current government, which set the bar at €12 billion euros in 2015, is unequalled in France.
The eurozone countries must send the European Commission their draft 2015 budgets by Wednesday 15 October. On the same day, France is to announce the broad outlines of an ambitious reform of its economy, including opening the regulated professions up to competition. “No decisions have been taken at this stage” on these draft budgets, stressed Commissioner for the Euro Jyrki Katainen in reference to the “speculation” on the French budget which has appeared in the French press. The Commission will take position by the end of October on the national draft budgets, before once again announcing its budgetary interpretation when it presents its autumn forecasts in early November. (MB)