France, Italy, Belgium promise reform in letters to EU: Dombrovskis

By Jan Strupczewski BRUSSELS (Reuters) - France, Italy and Belgium have sent letters to the European Commission pledging structural reforms and possible extra fiscal steps to win more time before a ruling on whether their budget policies break EU rules, the EU's top euro official said. France, which is already under an EU disciplinary procedure for running a budget deficit that is way above the EU ceiling of 3 percent of GDP, is facing a fine of up to 4.2 billion euros if by March the Commission decides that it has not taken steps agreed with EU finance ministers to consolidate its finances. Italy and Belgium do not face fines yet, but could be put under the EU's disciplinary procedure for failing to tackle their high and rising public debt. The Commission will review the progress of Paris, Rome and Brussels in early March. European Commission Vice President Valdis Dombrovskis told Reuters in an interview the letters from the three countries outlined their commitment to structural reforms to strengthen their competitiveness, the internal and labor markets. In the case of France the letter also pledged the country would deliver the necessary fiscal effort to return to a deficit below 3 percent of GDP and in the case of Italy and Belgium to address their debt developments, Dombrovskis said. "The Commission will be able to assess the progress of all three in spring and we will return to the question (of compliance with EU budget rules) seeing how much progress there has been on structural reforms and the fiscal effort." (Reporting By Jan Strupczewski; Editing by Alastair Macdonald)