Tax & Spend
France and Italy Get EU Deficit Scolding as Markets Watch
- Seven countries will face procedure for excessive shortfalls
- EU move raises stakes for whoever wins snap French election
Emmanuel Macron and Giorgia Meloni at the welcome ceremony on day one of the 50th G7 in Fasano, Italy.
Photographer: Antonio Masiello/Getty ImagesThis article is for subscribers only.
France and Italy were reprimanded by the European Union for running big deficits, the first stage in a confrontation that will test the bloc’s resolve and could in theory prompt billions of euros in fines.
The announcement by the European Commission on Wednesday is all the more consequential with French legislative elections looming that have rattled investors on the prospect that a winner from either the far-right or the left will only further bloat the country’s public finances.