BRUSSELS (Reuters) - The executive European Commission responded to suggestions it has shown favouritism to France by insisting on Friday that it applies budget rules equally to all EU states, big and small.
The European Commission was reacting to rare criticism from the current Dutch head of the euro zone finance ministers group after the Commission's president, Jean-Claude Juncker, said it had granted Paris budgetary leeway "because it's France".
Dutch Finance Minister Jeroen Dijsselbloem said in a newspaper interview that if Juncker really felt France was exceptional, then "this really damages" the Commission's credibility as guardian of the EU's Stability and Growth Pact.
Commission spokesman Margaritis Schinas told a news briefing there was room for discretion in implementing the pact.
"The application of the Pact is rule-based and evidence-based and takes into account the political and legal discretion which the rules themselves foresee," he said. Specifics of each case were considered "while ensuring equal treatment", he said.
He said Juncker made clear that the Commission would not differentiate between big and small states in applying the rules.
Juncker said France, co-founder of the European Union and second biggest economy in the euro zone, should "absolutely" have a budget deficit below the 3 percent target set by EU rules next year. It is currently higher.
Asked whether France might get some leeway on that 3 percent target, he replied in televised remarks: "I continue giving leeway to France. One day it’s important to do without leeway."
Asked why France had been given leeway before, he said: "Because it's France. The usual France. I know France well, its reflexes, its internal reactions, its multiple facets. We cannot apply the Stability Pact blindly."
Dijsselbloem responded: "We need the Commission to be in the lead. To be objective. Indifferent to small countries, big countries. Indifferent, whatever there are elections coming up or we just had election, or there will be elections next year.
"The biggest concern is whether the Pact is being upheld and the Commission is credible."
Last year, the Commission recommended France get an extra two years to bring its deficit below the ceiling of 3 percent of GDP, extending the deadline for the third time since 2009.
The recommendation riled some smaller euro zone countries and some within the Commission because many policy-makers saw it as undermining the credibility of budget rules that were sharpened during the sovereign debt crisis.
Last month the Commission also pushed back to July a decision on whether to fine Spain and Portugal for missing budgetary targets to wait for the result of Spanish elections at the end of June. France has elections next year.