The European Commission has cleared France and Italy's modified 2015 budgets after both countries agreed to trim their deficits further, ending a stand-off between Brussels and the two centre-left governments.
A day after France and Italy amended their 2015 budgets in the hope of avoiding censure from the European Union executive, the economics commissioner said no national budget had been so out of line it was rejected by an initial deadline of Wednesday.
Detailed analysis will continue next month, Commissioner Jyrki Katainen added.
Noting intensive discussions with some governments since budgets were filed to Brussels two weeks ago, Katainen said: "I want to welcome the fact that these member states have responded constructively to our concerns.
"After taking into account all of the further information and improvements communicated to us ... I cannot immediately identify cases of 'particularly serious non-compliance' which would oblige us to consider a negative opinion at this stage.
"Our services will now work to complete their detailed assessment of the draft budgetary plans and the new Commission will adopt its opinions on these in November," Katainen added.
"Any shortcomings or risks will be clearly highlighted at that point. Any possible further steps under the Stability and Growth Pact will be assessed at a later stage."
France's finance minister Michel Sapin welcomed the Commission's decision, saying the "constructive dialogue" with the European Commission on the 2015 budget would continue.
He reiterated French calls for more to be done at EU level to kick-start growth. "We must collectively find the means to drive an economic recovery in the whole euro zone," he said.
Yesterday, Italy and later France published letters to Mr Katainen outlining adjustments to next year's budgets that would further trim their deficits and bring them closer to the levels set out in agreements among member states.
Both centre-left governments have been arguing with Germany and its conservative Chancellor Angela Merkel to be allowed not to cut their spending as sharply as EU rules dictate in order to prevent the euro zone economy slipping back into recession.
Germany has insisted both need to make more effort to reduce their structural deficits, which are adjusted for swings in the business cycle, for example by reforming welfare and other systems in line with demographic change.
But German leaders want to avoid an all-out clash with Paris in particular, or risk fanning anti-EU sentiment in France.
Failure to satisfy the Commission could result in one or both governments being asked to make further changes to their budgets and ultimately facing fines if they refuse.
At issue is both the development of the euro zone's second and third biggest economies - although European officials point out that the budget adjustments involved are barely of economic significance - and the political credibility of the currency.
Smaller euro zone states, such as Ireland, Portugal and Greece, which have put voters through tough austerity programmes to meet EU rules, are angry that France is trying to bend them.
