“We are monitoring” the debates on the French budget, “particularly the implications of the suspension of Social Security reform, as this will have significant budgetary consequences,” stated Valdis Dombrovskis in an interview in Washington, adding that it is “important that measures are taken to meet the commitments made regarding public deficit reduction.”
In the near future, the European Commission expects “comprehensive proposals to be able to make an adequate assessment,” especially concerning adherence to the budgetary trajectory to reduce the deficit to 3% in the medium term.
Dombrovskis expressed optimism, noting that “the French budget generally seems as expected” for this year despite its late and chaotic adoption: “We know the government is working to ensure it meets the budget” projected for 2026.
“But we need to see concrete proposals and understand all budgetary implications,” he insisted.
The European Commissioner is in the U.S. capital attending the annual meetings of the International Monetary Fund and the World Bank, taking place in Washington until the end of the week, as well as the G20 and G7 meetings scheduled on the sidelines of the event.
This is an opportunity to discuss with economic ministers, particularly the war in Ukraine, initiated by the Russian invasion on February 24, 2022, and how to increase pressure, especially financial, on Russia while helping Kyiv prepare for the post-war reconstruction period.
“We are preparing a European-level reparations law that will allow us to use the revenues generated by frozen Russian assets. We encourage our partners to see what they can do with the assets located in their territories,” stated Dombrovskis.
“We have agreed to use these revenues; the United Kingdom and Canada have already indicated their willingness to work with the European Union. Now, we await a concrete response from the United States and Japan,” he specified.
