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MNI: EU Already Looking At Flexibility For France- Officials

EU officials speak about the likely treatment of France under the bloc's fiscal rules.

MNI (BRUSSELS) - MNI (BRUSSELS) - European Union officials are already looking at ways to allow leeway to a fiscally-constrained France under the bloc’s new fiscal rules, even as they prepare to launch an Excessive Deficit Procedure against the country next week, officials told MNI.

While details are confidential, MNI understands that France will be obliged to make an average annual fiscal adjustment of around 0.5% - 0.6% of GDP over the course of what is likely to be an extended seven-year programme. But officials are aware that the next French government will not see reducing its budget deficit to the EU’s regulation 3% of GDP from last year’s 5.5% as a priority, even though the more radical policy proposals by left-wing parties involved in coalition talks after this month’s parliamentary elections, including a restoration of the retirement age to 60 from 64 at a cost of EUR20-40 billion, are likely to be watered down. 

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MNI (BRUSSELS) - MNI (BRUSSELS) - European Union officials are already looking at ways to allow leeway to a fiscally-constrained France under the bloc’s new fiscal rules, even as they prepare to launch an Excessive Deficit Procedure against the country next week, officials told MNI.

While details are confidential, MNI understands that France will be obliged to make an average annual fiscal adjustment of around 0.5% - 0.6% of GDP over the course of what is likely to be an extended seven-year programme. But officials are aware that the next French government will not see reducing its budget deficit to the EU’s regulation 3% of GDP from last year’s 5.5% as a priority, even though the more radical policy proposals by left-wing parties involved in coalition talks after this month’s parliamentary elections, including a restoration of the retirement age to 60 from 64 at a cost of EUR20-40 billion, are likely to be watered down. 

Keep reading...Show less