BRIEF: Fiscal Commitments "Critical" - Eurogroup's Donohoe

Recent volatility in French government bond markets underscores the need for euro area governments to stand by commitments to prudent fiscal policies, Eurogroup Chairman Paschal Donohoe said on Thursday.

Talking to reporters ahead of a Eurogroup meeting, Donohoe noted that earlier this year eurozone  finance ministers committed to a "mildly contractionary" fiscal stance in 2025. 

"That does mean the overall direction of national and euro area budget policy is to move to a move to a lower level of borrowing and a lower deficit for next year," he said.  

The comments follow the announcement made by the EU Commission Wednesday that seven EU countries had an excessive budget deficit in 2023, including France, Italy, Poland and Belgium. (See MNI: Multi-Year Fiscal Plans For EU States Delayed Until Autumn- Officials)