MNI BRIEF: Italy, France Seen Facing Excessive Debt Procedures

The European Commission is likely to be obliged to open excessive deficit procedures against both France and Italy next year, the chair of the European Fiscal Board Niels Thygesen told reporters on Wednesday.

“It would be difficult to avoid given the figures we currently expect for 2024,” he said following publication of the EFB’s Annual Report, when asked whether such procedures were likely against the two countries.

France recently announced its deficit would be 4.4% of GDP next year, down from 4.9% this year, but still well above the 3% limit on budget deficits. Italy recently raised its 2024 budget deficit target to 4.3%, up from a previous 3.7%. (See MNI: Italy Makes EU Fiscal Rules Push As Deficit Nerves Grow)