(MENAFN) The European Commission is planning to give more time for Spain, France and several other euro zone members to cut their public deficits below the target limit of 3 percent of GDP, Reuters reported, citing El Pais newspaper.
The paper quoted senior Spanish and European Union sources as saying that the EU would give Spain one or two years beyond the date to fulfill the target, while France could get an extra year.
France said recently that it would stick to its deficit-reduction target for 2013 regardless of any softer line from Brussels.
In November, EU Economic and Monetary Affairs Commissioner Olli Rehn said that Spain's fiscal targets are to be reassessed in February, adding that additional austerity measures won't be necessary until 2014, when more structural reforms are likely to be required.
Recently, Rehn was quoted by French newspaper Le Monde as saying that France may not need additional belt-tightening and may have room for a "softer adjustment".
Earlier this month, European and Spanish sources expected that Spain's fiscal path was likely to be loosened to offset the country's second recession in three years.
Such decisions need a formal discussion between the 27 European commissioners as well as a political green light from euro zone finance ministers.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.