Tag: budget deficit

The European Commission proposed yesterday (22 February) to suspend a third of Hungary's regional funds next year in an unprecedented move to sanction the country’s budget deficit. Hungarian politicians, including the EU’s employment and social policy commissioner László Andor, have criticised the move.

Fifteen large European firms have filed a complaint to the European Commission about hastily-adopted taxes in Hungary which they say threatens their activities in the country taking over the rotating EU Presidency. EurActiv.hu reports from Budapest.

A potential political crisis in Portugal that would worsen the country's debt woes is looming larger as the minority Socialist government and the centre-right opposition engage in a game of chicken over the 2011 budget.

As pension reform reaches the top of the EU agenda to counter market speculation over the sustainability of public finances, a pool of eight commissioners is set to meet for the first time on Friday (11 June) to give the green light to a comprehensive roadmap centered on "adequacy" and "long-term sustainability".

In an interview to be broadcast ahead of an EU summit next week, European Commission President José Manuel Barroso says expelling a country from the euro zone, as suggested by German Chancellor Merkel, would be against EU treaty rules.

The European Commission has told Hungary, Latvia, Lithuania and Malta they are on track with their programmes to cut budget deficits below the bloc's ceiling.

The European Union's executive launched disciplinary action on Wednesday (7 October) against Germany, Italy and seven other countries for letting their budget deficits rise above the bloc's permitted ceiling. But actual measures are not foreseen until recovery has taken hold.

Having convinced fellow eurozone nations that his country should be allowed to bypass a deal between the bloc's 27 members on eliminating budget deficits in order to boost growth and employment, French President Nicolas Sarkozy has also won support for his candidate to head the International Monetary Fund (IMF).

Although EU public finances improved dramatically last year, many member states are still failing to use the economic boom to decrease their deficits further, the Commission said this week.

The Hungarian government is working out a road map for its accession to the eurozone, after having dropped its 2010 target date for euro accession. Meanwhile, the EU is to call for improved budgetary discipline.

Economic and Monetary Affairs Commissioner Joaquín Almunia said that he was pleased with the progress made, but refused to let France and Germany off the hook.

The Commission will decide on 14 November 2006 on the measures it takes following Poland’s excessive deficit.

Public debt is slightly on the rise, whereas the budget deficits in the 12-country eurozone sees a decrease. However, Italy is the 'sick man' of the group.  

For the first time in seven years, the EU's biggest economies are all set to meet the 3% deficit criterion of the Stability and Growth Pact, economy and finance ministers have announced. 

The EU economy will grow stronger in 2006 than in previous years, according to the Commission's spring economic forecast. The boost will be partly due to stockpiling before a major VAT rise in Germany.

Germany has been given a 2007 deadline to get its budget deficit below 3 per cent.

In November, the Commission will announce its opinion on whether Germany's budget deficit should come under closer scrutiny while Greece is just a step away from financial sanctions.