This week, the European Commission sent a letter to France and Italy, expressing concern about their 2020 budget plans. In the case of France, the spending evolution scheduled for 2020 fails to comply with the structural effort promised (0.6pp of GDP vs 0.0pp scheduled) and with the debt reduction path previously settled. France was invited to react by giving more information on why it is the case before deciding on a qualification of this breach of the rules. France answered today that it is still determined to reach a budget balance (something which has not happen in any of the last 40 years), though just not right ... (full story)