- Jyrki Katainen, EU Economic Affairs Commissioner
The European Commission said it would approve 2015 French and Italian budget, after the countries made last-minute improvements to spending plans. French Finance Minister Michel Sapin assured that he would slash 3.6-3.7 billion euros from France's next year budget to meet EU requirements, while Italy also promised to revise its 2015 budget, cutting its deficit goal to 2.6% of GDP from 2.9% after the announcement of its 4.5 billion euros adjustment. The French government expects growth will accelerate to only 1% in 2015 up from 0.4% this year as the Euro zone's second-biggest economy struggles to regain stable footing. The Italian economy is in even worse shape. Italy's government expects the economy will expand 0.6% in 2015 after slowing by 0.3% this year.
Meanwhile, in the Euro zone's fourth-biggest economy consumers shared upbeat spending mood in September, the National Statistics Institute reported. Spanish retailers posted an annualized 2.9% growth, compared to a negative reading of 0.9% in August. The Bank of Spain expects the nation's GDP to expand 1.3% in 2014 and 2.0% in 2015, in line with government forecasts, though adding that downside risks to these outlooks have deepened in recent few months amid worsening global growth. Spain will publish its flash estimate for the third quarter GDP on 30 October.
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