By Robin EmmottBRUSSELS (Reuters) - The European Commission will tell France, Italy and Belgium on Friday that their 2015 budgets risk breaking EU rules, but it but will defer decisions on any action until early March.Draft documents seen by Reuters show the three countries are part of a group also comprising Spain, Portugal, Austria, and Malta at risk of busting budget limits.The Commission urges all of the countries not to break their budgets, but picks out Rome, Paris and Brussels for a second review of compliance in March.This gives the three more time to adjust policy before the EU executive must decide whether to fine France for missing consolidation targets or put Italy and Belgium under a disciplinary procedure because of their debt."Overall, the Commission is of the opinion that the Draft Budgetary Plan of France, which is currently under the corrective arm, is at risk of non-compliance with the provisions of the Stability and Growth Pact," a draft document, seen by Reuters, said."The Commission will examine in early March 2015 its position vis-à-vis France's obligations under the Stability and Growth Pact in the light of the finalization of the budget law and of the expected specification of the structural reform program announced by the authorities," it said.The wording for Italy and Belgium is the same.The Commission will publish the assessments of all of the draft budgets of the 18 euro zone countries, except Greece and Cyprus which remain under bailout programs, on Friday.The assessments are a new power the EU executive arm got last year in the wake of the sovereign debt crisis, to make sure governments did not ignore EU rules that set limits on the size of public debt and deficit.(Editing by Jeremy Gaunt)Join the conversation about this story »
 |
| READ THE ORIGINAL POST AT www.businessinsider.com |