EU BLASTS France and Italy over deficits: Brussels in panic over post-Brexit budget

A statement from the European Commission yesterday hit out at Paris and Rome, as well as a number of other member states who they believed had lost control of their spending. 

and in particular were targeted in the ‘European Semester Autumn Package’ which analyses EU member states and their compliance with spending rules. 

France was accused of “non-compliance” of previous targets, with the warning of a “significant deviation” from its previous fiscal aims. 

The statement said: “For France … the DBP is found to be at risk of a noncompliance with the requirements for 2018 under the SGP, as the Commission Autumn 2017 Economic Forecast projects a significant deviation from the required adjustment path towards the MTO and non-compliance with the debt reduction benchmark in 2018.”

Italy came under even more fierce criticism, with the EU warning its debt was worryingly high despite attempts to bring it under control. 

They said the country’s public debt was set to increase to 132.1 per cent of economic output in 2017, falling only slightly to 130.8 per cent next year. 

The statement warned Italy’s current situation was a “reason of concern” and said their debt level would be re-assessed in spring. 

It said: “In the case of Italy, the persisting high government debt is a reason of concern. In a letter to the Italian authorities, Vice-President Dombrovskis and Commissioner Moscovici informed that the Commission intends to reassess Italy’s compliance with the debt reduction benchmark in Spring 2018.”

As well as Italy and France, Belgium, Austria, Portugal and Slovenia were accused of posing a “risk of non-compliance” with spending targets. 

Only six countries were “broadly” compliant while just another six were fully compliant.

It comes at a time EU chiefs are repeatedly warning the UK it will be worse off economically outside the EU.

This week Michel Barnier, the EU’s Brexit negotiator, claimed Brussels was ready for a ‘no deal’ scenario – but warned the UK would suffer. 

He said: “A no deal is not our scenario – even though we would be ready for it. 

“The no deal option comes up so often in British public debate but only those who ignore, or want to ignore, current benefits of EU membership would say no deal would be positive option.”