The Germans have tagged teamed up with the mighty Finns to fire a salvo at the European Commission over allowing France and Spain additional time to cut their budget deficits to EU targets, an extension that they are very much in danger of missing anyway.
The FT has a hold of the eight page rant which says that the EC has used an “arbitrary approach” in giving the extensions and suggests that “a separate pair of eyes” is needed to make sure Brussels is properly applying the budget rules.
“Since 2012, the commission has substantially changed the way it assesses whether a Member State has taken ‘effective action’ to comply with [EU budget rules],” the memo states. “The recent methodological changes imply the risk of watering down the newly strengthened [rules] at its implementation stage.”
Earlier in the week EC forecasts showed that France is likely to post a 3.9% deficit for 2015 even though they were given an extension to bring it down to target at 3%. Spain has until 2016 to hit the target but is looking at a 6.5% deficit next year. Italy’s new PM Matteo Renzi has also made noises about asking Brussels for further flexibility.
Is anyone actually surprised that France and Spain are going to miss the target even after getting extra time to do their homework? As usual the EC talk a good game but when it comes to the crunch there’s no slap on the wrist or punishments as promised.
Full story from the FT here (may need to sign in or tell them what you had for breakfast).
The attitude is “Why bother?” when they can sit back and wait for the fabled “light at the end of the tunnel” to rescue them. Same old same old Europe.
This should be the national song of the EU
