Wednesday, February 25, 2015

Italy and Belgium, no procedure for EU deficit, rejected France – Reuters Italy

Italy and Belgium, no procedure for EU deficit, rejected France – Reuters Italy

BRUSSELS (Reuters) – Together with Belgium, Italy will be spared from the procedure of the EU Commission for excessive deficit, not so France, Brussels still under special surveillance.

Basically then positive assessment on the law of Stabilia: good correction deficit expected this year but of course attention to the dangerous mountain of debt.

E ‘judgment, explained to the press, the Community executive should complete the picture Friday morning with the so-called recommendations’ country specific’.

So the vice president and responsible for the European Semester Valdis Dombrovskis, at the end of a meeting of the Commission specifically dedicated to the evaluation of budget plans Italian, French and Belgian.

“Taking into account all relevant factors, including the weakness of growth and the implementation of structural reforms, it was concluded that at this stage it is not appropriate to engage the excessive deficit procedure in the case of Italy and Belgium, “he said.

However, it remains that the Commission continues to identify for Rome “excessive macroeconomic imbalances that need decisive action and specific monitoring.”

In particular, says the head to the Economic and Monetary Affairs Pierre Moscovici, came from a Brussels letter in which explicit reference to additional efforts on the debt front.

A too rigid – literally – of the EU rules on public debt would impose a correction to Rome to be judged too “brutal”, concludes Mpscovici.

Quite different from the position of Paris, which asks Brussels to intensify the correction setting a new exam in May, already expecting to April the presentation of an “ambitious “reform program.

France, which Brussels recommended for this’ year a structural correction of 0.5%, will have until 2017 to bring the deficit within the EU limit of 3% of gross domestic product.

© Thomson Reuters 2015 All rights reserved Market Reuters.

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