On Wednesday 4 December, the Eurogroup asked the eight euro area countries - Belgium, Spain, France, Italy, Portugal, Slovenia, Slovakia and Finland - whose draft budget plans for 2020 may risk non-compliance with the Stability and Growth Pact to "consider in a timely manner the necessary additional measures to address the risks identified" and to respect European budgetary rules.
This statement is based on the European Commission's assessment at the end of November of the draft budget plans of the nineteen euro area countries (see EUROPE 12373/1).
Faced with the slowdown in economic growth, the Nineteen also put the case for "differentiated" budgetary responses from one Member State to another.
In particular, countries whose budget paths continue to deviate from the medium-term objectives should "rebuild fiscal buffers", the Eurogroup considers. The latter is concerned about the low reduction in public debt in some countries - Italy is not explicitly mentioned - and calls on them to act vigorously, in particular by taking advantage of low market interest rates.
On the other hand, the Eurogroup welcomes the fact that some countries - Germany and the Netherlands - with a favourable budgetary position have used their fiscal room to manoeuvre to stimulate public investment and growth while monitoring the path of their public finances over the long term.
See the Eurogroup statement: http://bit.ly/33Oo8dN (Original version in French by Mathieu Bion)