Brussels, 07/11/2014 (Agence Europe) - The European Commission will not unveil its opinion of the member states' draft budgets for 2015 on Wednesday 12 November, postponing it instead until later in the month.
The brand new Juncker Commission has not yet had time to properly examine all the draft national budgets for 2015. “The new European Commission said it needs more time. Not too far because national parliaments need to take into account the European Commission opinion in December and take new measures if necessary,” explained the head of Eurogroup, Jeroen Dijsselbloem, on Thursday 6 November. Confirming this view, EU Economic and Financial Affairs Commissioner Pierre Moscovici said he would be working with his colleague Valdis Dombrovskis, the Euro and Social Dialogue Commissioner, to unveil the opinions later this month, as required by the Stability and Growth Pact. The 12 November special Eurogroup meeting will therefore be slightly postponed.
On the Barroso Commission's decision to not reject the draft budgets of five eurozone countries (particularly France and Italy (see EUROPE 11187 and 11186), Moscovici said: “We have now to prepare the opinions on the draft budgets. There was no rejection of any draft budgetary plan by the previous Commission because, after some exchange of views, Jyrki Katainen, who was my predecessor, considered that there was no severe non-compliance. But as Jeroen said, that does not mean that it is the end of the story. Now we must consider whether effective action has been taken or is about to be taken by some member states and what is the structural effort and whether this structural effort is sufficient and what are the structural reforms that are led or going to be led. In that view we will deliver our opinions, and we still have at hand all the tools which exist under our rules. It is the way I will handle the situation, together with Valdis Dombrovskis.” Moscovici added that there was a wide range of tools available in the SGP, the Commission was taking a smart approach and would be able to take “subtle decisions, rather than simplistic ones.”
Noting the European Commission's slimming down of its eurozone economic growth forecasts from 1.2% of GDP to 0.8% for 2014 (see EUROPE 11190), Eurogroup is unhappy about the gloomy situation. Although average growth in the eurozone will be in the black in 2014 after two years of recession, it will gradually pick up in 2015, said Dijsselbloem, recalling the political mix recommended by the leaders of the big European economies - budget consolidation, a growth-friendly budget, structural reforms and investment. (MB)