As announced (see EUROPE 12045), the Ecofin Council on Friday 22 June drew a line under the excessive deficit procedure in place against France since 2009.
This decision follows the recommendation by the European Commission to the finance ministers of the EU at the end of May (see EUROPE 12025), as the French government deficit represented 2.6% of nominal GDP in 2017 and is expected to stand at 2.3% of GDP this year.
This departure from the corrective arm of the Stability and Growth Pact does not, however, mean an end to the country's efforts on the budgetary front. France is joining the preventative arm of the Pact, which now requires it to reduce its structural deficit by 0.6% of GDP a year.
The ministers also sent recommendations to Hungary and Romania to correct the significant gaps between their respective budgetary trajectories and their medium-term objectives. (Original version in French by Lucas Tripoteau)