Belgium unlikely to receive ‘unlawful’ fine from Commission

The European Commission is set to rap Belgium this week for failing to do enough to trim its budget deficit but is unlikely to go as far as imposing a fine, according to a press report Saturday. "Belgium can breathe easy," L'Echo wrote on Saturday ahead of the release Wednesday of the European Commission's recommendations to EU countries on how to remain on track with the bloc's economic and budgetary targets.

Furthermore, any fine imposed by the Commission would be unlawful, however, according to U.S. law firm Cleary Gottlieb, which had been consulted by finance minister Koen Geens (pictured), reports De Morgen . Cleary Gottlieb believes that the principles of non-retroactivity and proportionality would make it impossible for a fine to be imposed, the EU executive being unable to apply to Belgium reinforced budgetary rules adopted in December 2011, for economic conditions that existed in 2009, according to the law firm.

In any case, the Commission considers that it would not be appropriate for Belgium to be fined when, last week, it granted an additional period of two years in France for bring its deficit below 3% of GDP, reports L’Echo. Belgium would still be subject to increased budgetary controls in 2013 and 2014.

(AFP)