Brussels, 06/03/2015 (Agence Europe) - On Tuesday 10 March, European finance ministers are expected to endorse the European Commission's recommendation that France be granted a conditional two-year extension to its deadline (to 2017 rather than 2015) for bringing its public deficit below the 3% of GDP cut-off point.
The Commission's recommendation sets a new public debt reduction trajectory for France (4% of GDP in 2015, 3.4% in 2016, 2.8% in 2017) and a new structural budget effort trajectory (0.5% if GDP in 2015, 0.8% in 2016, 0.9% in 2017). A diplomat says the document has been discussed at technical level, where very little was altered, only procedural matters rather than the substance or the timelines.
At the ministerial talks that will kick off at the Eurogroup meeting on Monday 9 March, French finance minister Michel Sapin will explain to the countries that are demanding 'guarantees' how France is planning to meet its commitments, starting with promised public spending savings of €4 billion that are the structural adjustment required for 2015 (see EUROPE 11267 and 11263). These savings will be spelled out in the French stability and reform programmes to be sent to the European Commission by the French authorities by the end of April. In early June, the Commission will state whether France has taken effective action.
If the Ecofin Council votes on the recommendation about France, only eurozone nations (bar France) will have the right to vote.
The Latvian Presidency of the Council of the EU has postponed until the Ecofin Council in May discussion about macroeconomic imbalances facing 16 countries. (Mathieu Bion)