Euro zone countries improved their fiscal stance, a sign of growing financial stability, the EU Commission said on Monday, but it called on France to take new action to comply with EU deficit limits and warned Italy faced ''urgent'' challenges. Laura Frykberg reports.
He won a hard fought campaign for the presidency.. But now the work begins to win parliament. Without it - France's Emmanual Macron may be unable decrease the deficit. A key election pledge - that the European Commission is keen he put into practice. To help the bloc's slow but steady recovery. (SOUNDBITE) (English) EU COMMISSION VICE PRESIDENT, VALDIS DOMBROVSKIS, SAYING: "Although the overall picture of the public finances continues to improve, several countries still have high levels of private and public debt, which need to be set on a downward path." Italy - is among them. After Greece it has Europe's largest public debt. Plus a struggling banking sector with billions of dollars worth of bad loans. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "The Italian economy has been incredibly sluggish post financial crisis it is still seven percent smaller than it was in 2008." In April, Rome adopted a series of budget measures.. Allowing the Mediterranean nation to get off with a light warning - for now. (SOUNDBITE) (English) EUROPEAN ECONOMIC AND FINANCIAL AFFAIRS COMMISSIONER, PIERRE MOSCOVICI, SAYING: "The Commission will re-assess Italy's compliance with the debt criteria and based on our Autumn forecasts so we will have further rendez-vous with the Italian authorities, but today is rather a good news too." The news still looks favourable for Macron too at the moment. But he doesn't have much time. The commission has given France until the end of the year to cut its deficit by a minimum of 0.4 percent of GDP.