The EU’s executive arm has repeatedly warned France that its draft budget does not meet recommended targets for cutting long-term deficit cycles, but Paris has played down the criticism. It comes as Italy has also come under fire for its budget which increase Rome’s structural deficit next year. Mr Moscovici, a former French finance minister, told reporters in Brussels: “What I want to tell France is this: make more of an effort – just one more push.
“Even though things are heading in the right direction, and despite the fact that your financial situation is in no way comparable to Rome’s.”
In a letter to the French finance ministry made public at the end of last week, the Commission wrote: “The preliminary evaluation of the Commission indicates that France’s trajectory does not respect the rhythm of debt reduction in 2019,” referring to eurozone fiscal rules.
The Commission is unhappy that France is not cutting its structural deficit by up to 0.6 per cent of gross domestic product (GDP), instead targeting a less ambitious 0.2 per cent of economic output.
It has sent Spain, Belgium, Portugal and Slovenia similar warning letters, stressing that it is part of its role to police eurozone budgets and avoid crises that can weaken the single currency area.
But the warnings were mild compared to the letter the Commission sent to Italy, in which it advised Rome against substantially increasing its structural deficit.
Rome’s budget proposal increases the 2019 structural deficit by 1.0 per cent of GDP rather than cut it by 0.6 per cent as required by EU laws.
The Commission told Italy on Wednesday that its budget plans were in serious breach of the rules underpinning the euro currency and said that the country should face sanctions.
But Italy says that its borrow-and-spend policy – which Brussels has described as profligate – would boost economic growth and help lower the debt ratio, while also reducing unemployment.
The populist government in Rome has since vowed to resist any pressure from Brussels and press ahead with its spending plans.
Italy’s far-right Deputy Prime Minister Matteo Salvini said any EU sanctions against Rome would be “disrespectful” towards Italians, adding that the government’s fiscal targets were valid and that he would not negotiate over them.
“A letter arrived from Brussels? I was expecting one from Father Christmas,” Mr Salvini said, in reference to the formal warning letter.
In an interview published on Thursday, Mr Moscovici elaborated on the bitter tug-of-war between Italy’s populists and European commissioners over Rome’s controversial budget plans, warning Italians “not to shoot the messenger”.