Attacks in France. Not enough to whip a deficit!
(BRUSSELS2) No mercy for France in these dramatic circumstances? According to the first elements obtained, the Stability and Growth Pact, even amended with a little more flexibility, as Jean-Claude Juncker has just presented, does not provide for any possibility of adjusting the deficit and debt system in the event of exceptional circumstances, such as those just experienced by France with an attack or a security risk, generating additional public expenditure due to the extraordinary situation (defence, police, education, prisons).
Admittedly, the communication, presented by Pierre Moscovici on Tuesday (January 13), presents a whole reading grid, making it possible to adjust the effort in the event of bad circumstances, or very bad circumstances ("exceptionally bad times" according to the original term of the communication which appeared only in English). But we refer above all to economic circumstances, not to other circumstances, we specify to the European Commission.
"exceptional circumstances" refer to unusual events beyond the control of the contracting party concerned and having significant effects on the financial situation of general government or periods of severe economic recession as referred to in the stability pact and revised growth rate, provided that the temporary deviation of the Contracting Party concerned does not jeopardize its medium-term budgetary sustainability. »
In conclusion, invoking exceptional circumstances for security or defense expenditure...it is not possible. No comment...
(Nicolas Gros-Verheyde)