Paris and Brussels made ​​the first steps in coordinating the French budget

hollande francoisFrance tried to find a common language with the European Commission (EC) on budgetary matters that took place earlier this week, a meeting between the French authorities and representatives of several member states of the European Union (EU) concerning the state budget for the new financial year. On Monday, several lawmakers, members of the committees of the French National Assembly, convened a meeting to exchange ideas about the new budget of the country, reports Euractiv. It was attended by Minister for European Affairs Thierry Repentin, Commissioner Michel Barnier and some French MPs, MEPs. The aim was to reconcile national and European budgetary policy, which is generally a difficult task. Barnier expressed his disappointment that the French finance minister Bernard Kaznyov not attend the meeting. Even if only three members of the center-right party oppositional attended. Some of them had good reason to be there – the draft budget for 2014 had to be accepted until 15th October, and the committee members are working on proposals for amendments. Socialist government sees the Finance Bill 2014 as a budget with austerity while EC defines it as not so difficult to implement.
Various times for the approval of national budgets is also a difficult task for the EU, which attempts to consolidate fiscal policy in the Eurozone. The requirement is that the Eurozone members to submit their draft budgets to the European Commission by mid-October. Those countries that do not follow the rules can be placed under close surveillance – a new procedure adopted as part of emergency measures to tackle the debt crisis. In theory, and for the first time this year, all parties must submit their draft budgets by 15th October. France has already done. At the last moment that made Italy, while Ireland is still Barnier said that when they are received, the details of the draft budgets are reviewed by Eurostat, and then at the end of October, shall be submitted to the EC. This year, issues related to the reliability of the statistical predictions of France, will be discussed. This is one of the new agreements between Brussels and Paris.
“We welcome the fact that projections are based on credible data for the first time in several years”, said Barnes. EC, however, also criticized the state of the public finances of France, saying the country has crossed the red line for the collection of compulsory levies, which increased by 4% between 2010 and 2013 to reach 46% of GDP. Michel Barnier is also concerned about the level of public expenditure, which reached 57% of GDP and above the average of 49% for the euro area. In Germany, the share of government spending is the lowest of all countries in the euro area – 45% of GDP. The European Commission and France are opposing views as to the budgeting and debt management. Barnier promised that the observations of the Commission will be focused only on the nominal budget deficit in 2014 is expected to be 4 percent of GDP. EC will pay more attention to the structural budget deficit after weak economic growth hampers recovery of public finances, further burdening potential growth of France. According to the legislative package to reinforce economic governance, popular as Six-pack and “Two-pack – countries must have a structural deficit no greater than 0.5% of GDP. In all EU countries the term structural deficit is interpreted in different ways.
Under structural deficiency mostly whereas that part of the gap, which remains unaffected by economic cycles, but it is difficult to measure. All costs and revenues related to economic activity. However, some countries are more vulnerable in case of an economic downturn.

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