Merkel increases pressure for delivery of reforms

German chancellor Angela Merkel has increased pressure on France and Italy to deliver extra economic reforms in exchange for more time to meet budget targets.

The European Commission “has made clear that that, which until now has been on the table, isn’t enough”, Merkel said in an interview with Die Welt am Sonntag. “I would subscribe to that view.”

France and Italy, the eurozone’s second and third-largest economies, have until March to bring the deficits in their 2015 budget plans into line with EU rules. That largess was granted on condition the governments use the time to enact further legislation in pursuit of economic competitiveness.

“The commission has established a timetable for France and Italy to present further measures,” Merkel said. “That’s sensible, as both countries are currently in the middle of a process of reform.”

Italy’s long-term credit rating was lowered last week by Standard & Poor’s, which cited weak growth prospects and high public debt. It came even after prime minister Matteo Renzi won a key vote to overhaul labour rules.