In January 2015, the European Commission adopted a communication which explains the flexibility margins in the Stability and Growth Pact and the conditions under which these margins can be activated, spokesperson Margaritis Schinas reiterated on Tuesday 30th August, when asked about the recent statements of the French Prime Minister about the rigidity of the Pact.
The day before, Valls had expressed approval of increased flexibility for the European budgetary rules. "The Social Democrat European Left must make its voice heard even more over economic recovery and building flexibility into the rules of the Stability Pact, in order to fight social 'dumping' and tax leakage, on the posted workers dossier", he said at the first meeting back after the summer break of the government majority in the south-west of the country. In so doing, the Socialist lined himself up with the Social Democrat position on the future of the European Union of 27 member states at European level (EUROPE 11607).
With nine months to go until the presidential elections, the French government has effectively openly criticised the budgetary virtue they pledged to respect and withdrawn its support for the transatlantic trade negotiations (see other article).
The Commission's communication of January 2015 lists the condition allowing a member state which is carrying out structural reforms, promoting investment and dealing with exceptional circumstances (natural disasters, influx of migrants) to benefit from the existing stability available under the Pact (EUROPE 11229). These rules are more flexible for countries in the prevention plank of the Pact (government deficit of below 3% of GDP), such as Italy, than for countries under an excessive deficit procedure, such as France. (Original version in French by Mathieu Bion)