Source link : https://love-europe.com/2024/06/17/france/expect-eu-to-finally-fine-a-far-right-france-politico/

the economic plans of National Rally, if it takes power, could make the figures worse not better. | Francois Lo Presti/Getty Images

“If RN implements its fiscal policies, then there’s no chance it can follow the [EU] fiscal rules and if it doesn’t follow the fiscal rules then the Commission will have to follow the [excessive deficit] procedure,” said Nils Redeker, deputy director of the Jacques Delors Institute, a Paris-based think tank. If the party followed through with its plans “the economic damage could be quite big.”

Losing trust

But the markets are already jittery. The French stock market suffered its worst week in more than two years. In the days before Macron’s election announcement a credit-rating agency downgraded the country over the cost of servicing its debt ― a sign of failing confidence.

And it comes at a time when the Brussels bureaucracy is at its most vulnerable. Following the European Parliament election last week, the EU must decide whether Ursula von der Leyen remains president of the Commission and then she, or whoever replaces her, must name new commissioners.

“The quickest way for von der Leyen to lose the trust of the smaller member states before she’s even nominated for a second term is by letting large member states, like France and Italy, off the hook under the new fiscal rules,” one diplomat from a northern European country said on condition of anonymity.

The whole point of the rules is to avoid the contagion effects of massive debt that almost toppled Greece at the start of the 2010s and was in danger of ripping apart the whole currency area.

The crunch point won’t come this week. That’s more likely in the fall when countries have to present roadmaps for how they’re going to reduce their debts and deficits, by which time France will have a new government.

Source link : https://www.politico.eu/article/european-union-france-budget-fines-far-right/

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Publish date : 2024-06-16 07:00:00

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Author : love-europe

Publish date : 2024-06-17 09:21:44

Copyright for syndicated content belongs to the linked Source.