European Commission Eyes France's Budget as Excessive Deficit Procedure Looms
France's budget management faces scrutiny as the European Commission considers suspending the excessive deficit procedure amidst broader EU financial challenges.
Key Points
- • France is under scrutiny from the European Commission regarding its public deficit management.
- • The excessive deficit procedure may be suspended for France as it adheres to its recovery plan.
- • Concerns remain about France's competitiveness, ecological transition, and youth education efforts.
- • Around one-third of EU member states, including Belgium, violate budgetary rules.
France's management of its public deficit is under renewed scrutiny as the European Commission proposes to suspend the excessive deficit procedure (EDP) for several member states, including France. According to a report released on June 4, 2025, by the European Commission, France is currently aligned with its public finance recovery plan, yet significant caution is advised.
Valdis Dombrovskis, the European Commissioner for Economy, emphasized that while France is making progress, it must remain prepared for corrective measures if any budgetary deviations arise. France has been under the EDP since July 2024, necessitating the country to maintain its public deficit below 3% of GDP and its public debt below 60% of GDP. Although the assessment indicates that France is managing its budgetary commitments reasonably well, experts warn that this does not imply total relief from financial pressures.
Furthermore, the European Commission has raised concerns regarding France's competitiveness and emphasized the need for advances in its ecological transition and the education systems for the youth. Notably, the Commission criticized France's insufficient progress on energy renovation projects, coinciding with the government's temporary suspension of the MaPrimeRenov aid scheme, designed to encourage energy-efficient home renovations.
The backdrop of this scrutiny also highlights the plight of other EU member states, such as Austria and Romania, who are facing intensified examinations due to their significant budget deficits—reported at 4.7% and 9.3% of GDP, respectively. The overall landscape reveals that about one-third of EU member states, including Belgium, are still violating EU budgetary guidelines, indicating that financial discipline remains a pressing issue across the bloc.