Brussels, 02/07/2015 (Agence Europe) - France's government deficit is expected to stand at 3.8% of GDP in 2015 and 3.4% in 2016, corresponding to the targets recommended by the Council of the EU on 10 March 2015, the European Commission states in a communication adopted on Wednesday 1 July.
This communication presents the Commission's analysis of the report submitted by France on the measures taken in response to the Council's recommendation. Overall, this report confirms the budgetary strategy laid out in the stability programme and therefore the French government's intention to correct its excessive deficit in 2017. As we reported (see EUROPE 11347), the Commission approved the additional measures planned by France to comply with the commitment to bring its structural budgetary effort (not including conjunctural effect) to 0.5% of GDP for 2015.
“On the other hand, the improvement of the structural balance as estimated by the Commission, on the basis of the information available to it on 10 June, is not enough to meet the recommendation in either 2015 or 2016”, the communication reads. The Commission therefore calls upon France to tighten up its budgetary strategy and to provide more details about the savings scheduled for 2016 and 2017 in order to bring its public deficit back below 3% of GDP on a sustainable basis within the deadline set by the Council. At this stage, the excessive deficit procedure has been suspended, and the Commission will reassess France's situation when it analyses the budgetary plans in the autumn. (Lionel Changeur)