EU rebukes France, Italy and others over excessive debt
EU rebukes France, Italy and others over excessive debt
The EU has started disciplinary proceedings against seven member states, including France and Italy, over their accumulation of debt. Brussels had suspended debt regulations to help countries cope with COVID-19.
Oh boy.
This timing is terrible for us in France. After seven years of Macron who made austerity measure after austerity measure and somehow made our budgetal deficit worse, I can guarentee you that everyone (the population) is sick of it and whoever gets elected in our current legislative will NOT go down the path of 'reduce public expenses to reduce debt' as it would be political suicide right now.
austerity measure after austerity measure and somehow made our budgetal deficit worse
Not surprising.
Reducing government spending means reducing the money that is in economic circulation.
Companies earn less, people earn less and ultimately taxes go down.Austerity is always unpopular and is mainly directed at meeting arbitrary deficit rules that have little practical relevance. The cost is a weakened economy, people getting poorer, public infrastructure falling apart, climate goals being missed, and more. All just because beaurocrats are afraid of leaving too much debt to our children. Yeah maybe, but is that worth making everything worse?
The banker lowered taxes for the rich while cutting spending for health care and education?
I am shocked. Shocked!
"According to the commission's economic forecast, France is at -5.5%, Italy is at -4.4% and Belgium is at -4.4% and will breach this deficit limit in 2024.
Spain is at exactly -3.0%. Austria, Finland, Estonia, Hungary, Malta, Poland, Romania, and Slovakia also have deficits that are too high according to the rules."
Ed:
This is the best summary I could come up with:
The Commission said it was satisfied that "the opening of a deficit-based excessive deficit procedure is warranted" in the case of seven countries.
The EU suspended debt and deficit regulations to help countries cope with the economic fallout of the COVID-19 pandemic and Russia's invasion of Ukraine.
The rules are now back in place and now any EU country going over debt and deficit limits run the risk of legal action.
According to the reformed rules, an EU member state's debt may not exceed 60% of gross domestic product (GDP).
According to the commission's economic forecast, France is at -5.5%, Italy is at -4.4% and Belgium is at -4.4% and will breach this deficit limit in 2024.
Austria, Finland, Estonia, Hungary, Malta, Poland, Romania, and Slovakia also have deficits that are too high according to the rules.
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