The EU Commission, the 27-nation bloc's executive arm, said the countries must instead overhaul their labor markets and implement fundamental reforms to make their economies more competitive.
After Europe's crisis over too much debt broke in late 2009, the region's governments slashed spending and raised taxes as a way of controlling their deficits — the level of government debt as a proportion of the country's economic output.
Besides France and Spain, the Commission is also granting the Netherlands, Poland, Portugal and Slovenia more time to bring their deficits below the EU ceiling of 3 percent of annual economic output.
The new measures, however, do not mean that Europe has abandoned its message of austerity and strict budgetary discipline altogether.
[...] bailed-out Greece, Ireland, Portugal and Cyprus still have harsh deficit targets they have to meet to continue getting bailout loans.
In its recommendations, the Commission urged France to cut red tape, implement pension and labor market reforms, and strengthen competition in the services and energy sectors.
To achieve this, the Commission says Madrid must scrutinize spending programs, push ahead with labor market reform, revise the tax system, reduce costs in the health sector and complete pending bank recapitalizations.
Since the debt crisis erupted, EU nations have agreed to give the bloc's executive arm more powers in scrutinizing national budgets, complete with the ability to punish or issue binding policy recommendations for countries running excessive deficits.
After Europe's crisis over too much debt broke in late 2009, the region's governments slashed spending and raised taxes as a way of controlling their deficits — the level of government debt as a proportion of the country's economic output.
Besides France and Spain, the Commission is also granting the Netherlands, Poland, Portugal and Slovenia more time to bring their deficits below the EU ceiling of 3 percent of annual economic output.
The new measures, however, do not mean that Europe has abandoned its message of austerity and strict budgetary discipline altogether.
[...] bailed-out Greece, Ireland, Portugal and Cyprus still have harsh deficit targets they have to meet to continue getting bailout loans.
In its recommendations, the Commission urged France to cut red tape, implement pension and labor market reforms, and strengthen competition in the services and energy sectors.
To achieve this, the Commission says Madrid must scrutinize spending programs, push ahead with labor market reform, revise the tax system, reduce costs in the health sector and complete pending bank recapitalizations.
Since the debt crisis erupted, EU nations have agreed to give the bloc's executive arm more powers in scrutinizing national budgets, complete with the ability to punish or issue binding policy recommendations for countries running excessive deficits.
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