France, the euro zone's second biggest economy, appeared as the weakest performer in European Commission economic forecasts on Tuesday with below average economic growth, falling investment and deteriorating public finances and competitiveness, reports Reuters.
Economic growth in the third biggest economy, Italy, emerging from recession, would be even slower over the next two years than in France, the Commission forecast, but it would invest more, cut its budget deficit and debt and keep a current account surplus.
Both countries clashed with the European Union's executive arm last month when they sent in for approval their draft 2015 budget plans that fell well short of their consolidation obligations under EU budget rules.
To avoid the political humiliation of an outright rejection of the drafts by the Commission, both Paris and Rome agreed to small changes in the plans, but the promised adjustments came too late to be included in the forecast on Tuesday.
Rather than fall, like virtually everywhere else in the euro zone, the French headline budget deficit is to grow steadily to 4.7 percent of gross domestic product in 2016 from 4.1 percent in 2013, the Commission forecast.
The only other country where the deficit is expected grow in this period is Luxembourg, but there the shortfall will be only 0.4-0.6 percent and come after years of surpluses.
France has a deadline for next year to bring the deficit down to below 3 percent, but has already said it would not make it until 2017, setting itself up for tougher disciplinary EU action, which might include fines for missing deadlines.