Brussels [Belgium], July 27: The European Council on Friday placed France and six other European Union (EU) member states under formal procedures, urging them to take corrective measures to address their budget deficits.
These countries, in breach of the bloc's budgetary rules, include Belgium, France, Italy, Hungary, Malta, Poland and Slovakia. Romania will continue to stay under the procedure as it has failed to tackle its deficits since being placed under it in 2020, according to a press release by the European Council.
Once placed under the "excessive deficit procedure," member states face enhanced scrutiny from the EU and receive recommendations to take effective steps to correct their deficits.
The EU specifies that member states should keep their deficits below 3 percent of their gross domestic product (GDP). In 2023, France's deficit-to-GDP ratio reached 5.5 percent, while that of Italy stood at 7.4 percent, the highest among EU members.
For the next step, the Council will adopt specific measures for these member states later in the year to take effective action to correct their deficits within a deadline, according to the release.
Source: Xinhua