Germany’s planned budget spending for the coming year to protect its economy from rising energy prices is not “targeted” enough. This was estimated by the European Commission on Tuesday. On the other hand, he sent a go-ahead to France on this point.
In an opinion on EU member states’ draft budgets for 2023 published on Tuesday, the EU executive singled out Germany and nine other countries, including Austria, Belgium and the Netherlands, for considering their plans to next year “are not fully aligned” with the Commission’s recommendations. . This “invites” this group of ten countries – which also includes Estonia, Lithuania, Luxembourg, Slovenia, Slovakia and Portugal – to “take the necessary measures (…) to ensure that their 2023 budget is fully aligned” with your recommendations.
Germany accused of unfair competition
In the case of Germany, Brussels believes that the increase in budget spending “is not the result of temporary and specific support for the most vulnerable households and companies.” Since the announcement of a massive 200 billion euro aid plan to help households and businesses cope with rising energy prices, Germany has come under much criticism. In particular, it has been accused by various European officials of unfair competition against other countries of the European Union (EU).
But this opinion of the European Commission is not binding. The rules of the Stability and Growth Pact, which impose precise limits on national budgets, have been suspended until the end of 2023 due to the economic crisis caused by the war in Ukraine. Tuesday’s communication aims above all to “engage in working with Member States to see how the orientation of their measures could be improved,” explained a European official.
France, Greece and Spain, the good students
On the contrary, the Commission considers that the draft budgets of France, Greece and Spain for 2023 “respect the recommendations”, in particular that of limiting aid to the most fragile households and companies.
Regarding Italy, Brussels refrained from issuing an opinion, pending information on the latest measures adopted by the new government of Giorgia Meloni.
Among the heavily indebted countries, Belgium stands out: the growth in spending forecast in its budget for next year is considered excessive. “Much of the problem stems from the indexing of public sector salaries and social benefits to inflation,” the European official said.
Source: BFM TV
