2023-11-23 10:38:50
The European Commission calls on four countries, including France, which it sees poorly “ be in line with the recommendations » budgetary figures set by the EU, in view of their public spending forecast for 2024.
Indeed, the commission does not hide its skeptical feeling towards France, Belgium, Croatia and Finland as to their abilities to achieve their commitments to reduce their public spending and, therefore, their deficits. budgetary. The terms of the 2024 budget, as committed in particular by Bercy, do not seem to convince the European Commission, which notes excessive public spending. France is labeled a “bad student” in the same way as Belgium, Finland and Croatia. Countries which risk not achieving the objectives set out in the European pact.
The commission, therefore, invites them “ to take the necessary measures to respect European limits », Underlined, Tuesday November 21, the Commissioner for the Economy, Paolo Gentiloni, during a press conference. It was on the occasion of its biannual meeting usually devoted to communicating on “ budgetary trajectories » of the 20 member countries of the euro zone. Brussels has thus expressed reservations regarding the 2024 French budget project. Bercy, for its part, displays serenity and optimism. France is ” in line on the reduction of the public deficit, expected at 4.4% of gross domestic product (GDP) […] Where did we have our forecasts », Says the Ministry of Finance. The rate should be reduced to 3% from 2027.
Budget deficit: Bercy displays optimism and serenity
This is what is provided for in the “stability pact” to which the 20 countries sharing the single currency are subject. You should know that the limit for the growth of net primary expenditure was set by the EU at 2.3% for France in 2024. And Bercy emphasizes that its finance bill is counting on an increase of 2.6%, i.e. a slight gap of 0.3% which should be corrected by the fallout from the latest upward revision of growth prospects for the country.
To understand the genesis of these requirements, we must go back to 2020. That year, “ to avoid a collapse of the European economy hit by Covid, the EU decided to deactivate its budgetary rules by temporarily letting spending slide to support growth “. Subsequently, the measure was extended due to the war in Ukraine. But from January 2024, the rules will be reactivated once more. Hence this obligation for European countries to return to the conditions of the stability pact which imposes a public debt ceiling of 60% of GDP. And the reform under discussion of the pact provides that control will relate in the future to the evolution of expenditure.
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