EU still undecided on France deficit / France, Italy, Belgium to get extra three months on deficit and debt

Under the strengthened budgetary policy coordination processes introduced in 2013, the European Commission was due by the 30 November 2014 to issue its opinion on the draft budgetary plans for 2015 of each of the eurozone countries.

Features suggested that internal discussions within the European Commission were finding it difficult to make a decision as regarding the budgetary plans for France which would leave it with a substantial budget deficit, and thus test the credibility of the EU budgetary control processes.

Several media sources reported on 27 November 2014 that the European Commission had decided to postpone its decision on the French, Belgian and Italian budgets, giving these 3 countries three more months to come up with alternatives to avoid breaching the budgetary rules set up by the budget coordination procedure.

This policy was approved by Eurozone Finance Ministers at a Eurogroup meeting on the 8 December 2014.

• Primary Source

ESO: Background information: EU likely to approve French, Italian 2015 budgets http://www.europeansources.info/record/statement-by-vice-president-katainen-on-the-draft-budgetary-plans-eu-likely-to-approve-french-italian-2015-budgets/

EUObserver, 21.11.14: German commissioner provokes French wrath http://euobserver.com/economic/126624

European Commission: DG Economic and Financial Affairs: EU economic governance: Stability and Growth Pact: Draft budgetary plans of euro area Member States http://ec.europa.eu/economy_finance/economic_governance/sgp/budgetary_plans/index_en.htm

EurActiv, 21.11.14: French Socialists call for Oettinger to resign http://www.euractiv.com/sections/euro-finance/french-socialists-call-oettinger-resign-310235

ESO: Background information: Pierre Moscovici rejects economic sanctions for member states http://www.europeansources.info/record/pierre-moscovici-rejects-economic-sanctions-for-member-states/

EurActiv, 27.11.14: Commission delays French deficit procedure http://www.euractiv.com/sections/euro-finance/commission-delays-french-deficit-procedure-310395

EUObserver, 27.11.14: France, Italy, Belgium to get extra three months on deficit and debt http://euobserver.com/economic/126700

ESO: Background information: European Commission assesses Draft Budgetary Plans 2015: seven Member States at risk of non-compliance http://www.europeansources.info/record/press-release-european-commission-assesses-draft-budgetary-plans-2015-seven-member-states-at-risk-of-non-compliance/

EUObserver, 28.11.14: France gets three months to tweak budget http://euobserver.com/economic/126720

EurActiv, 28.11.14: Juncker reprimands Oettinger over French deficit editorial http://www.euractiv.com/sections/euro-finance/juncker-reprimands-oettinger-over-french-deficit-editorial-310432

EurActiv, 28.11.14: France, Italy, Belgium promise reform to avoid sanctions http://www.euractiv.com/sections/euro-finance/france-italy-belgium-promise-reform-avoid-sanctions-310434

EurActiv, 01.12.14: Italy's lower house okays Renzi's budget, moves on to Senate http://www.euractiv.com/sections/euro-finance/italys-lower-house-okays-renzis-budget-moves-senate-310446

Le Soir, 29.11.14: Deficit proceedings against Belgium unfair (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE154515-Deficit-proceedings-against-Belgium-unfair

Deutsche Welle, 28.11.14: European Union grants budget laggards more time to meet deficit rules http://dw.de/p/1DvqV

Deutsche Welle, 28.11.14: EU budget sinners to get more time to adapt http://dw.de/p/1DvcR

Euronews, 27.11.14: European Commission has ‘abdicated its role’ as financial watchdog http://www.euronews.com/2014/11/27/european-commission-has-abdicated-its-role-as-financial-watchdog/

EUObserver, 02.12.14: MEPs accuse Moscovici of giving France special treatment http://euobserver.com/political/126753

EUObserver, 03.12.14: France lowers deficit forecast, vows no new taxes http://euobserver.com/economic/126779

EurActiv, 08.12.14: Italy and France hit back at Merkel over economic reforms call http://www.euractiv.com/sections/euro-finance/italy-and-france-hit-back-merkel-over-economic-reforms-call-310638

Euro|Topics: Main Focus, 09.12.14: Period of grace for Eurozone's debtor countries http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER155019-Period-of-grace-for-Eurozone-s-debtor-countries

Eurozone: Press Release, 08.12.14: Eurogroup Statement on the draft budgetary plans 2015 http://eurozone.europa.eu/newsroom/news/2014/12/eurogroup-statement-on-the-draft-budgetary-plans-2015/

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