November 12, 2019
Finance

Paris pushes back on EU budget warning

Frances finance minister today pushed back on EU warnings that his budget plans for 2020 run the risk of a “significant deviation” from the blocs spending-and-debt rules.

Bruno Le Maire defended Paris “political choice” to cut taxes and spend more, in a statement pointing to economic weakness and trade tensions as justification for stimulus.

“In a period of economic slowdown, we have chosen to lower French taxes and change the pace of fiscal consolidation,” he said. “It is a political choice that we made to take into account the social situation in France and the international economic context.”

Le Maires comments come the same day that the European Commission published its reactions to EU countries draft budget plans, as part of the so-called Stability and Growth Pact.

Brussels sent similar warnings to Italy, Spain, Belgium, Finland and Portugal. They have until Wednesday night to respond with clarifications.

“In a period of economic slowdown, we have chosen to lower French taxes and change the pace of fiscal consolidation.” — Read More – Source

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