EU Warns France of Budget Breach, Urges Spending Cuts
The European Commission has warned the French government to adjust its spending plans for next year to comply with the EU's debt and deficit rules, which will be reinstated after a four-year suspension. France, along with Belgium, Finland, and Croatia, has been given warnings by the Commission. Ignoring the warnings could lead to a lengthy process of spending cuts and potential financial sanctions. The resumption of these rules comes at a critical time for Europe's feeble economic growth and high interest rates. France's violation of the deficit criteria could trigger an Excess Deficit Procedure, and the case is particularly sensitive as France has received special treatment in the past.