In view of the excessive budgetary deficits, the EU Commission is targeting France, Italy and five other countries. On Wednesday it certified that they had incurred excessive new debt, which made an excessive deficit procedure necessary. According to European rules, this procedure could also result in fines. In the EU Commission’s view, Belgium, Malta, Hungary, Poland and Slovakia also have excessive budgetary deficits that require an excessive deficit procedure.
France is currently under special observation on the financial markets: President Emmanuel Macron’s decision to hold new elections has caused turbulence, as there is speculation about a victory by the eurosceptic Rassemblement National (RN) in the parliamentary elections. Finance Minister Bruno Le Maire has warned that the country could slide into a financial crisis as a result of the new elections.
The EU Commission’s recommendation to initiate an excessive deficit procedure still has to be approved by the EU finance ministers in July, which is considered a formality. In November, Brussels will then present proposals on how quickly the deficit should be reduced.
