Tag: deficit

Several eurozone countries are likely to miss deficit cutting targets because of a weak economy, the European Commission is expected to forecast today (22 February), but they may be granted extra leeway rather than face disciplinary action.

The European Commission has unveiled yesterday (6 October) its blueprint for the next generation of EU cohesion funds after 2013, under which it will be able to suspend funding if member states flout budget rules or breach the EU’s Stability and Growth Pact. 

Greece has given what amounts to an ultimatum to the European Union to come up with a clear offer of standby loans next week or face the embarrassment of Athens asking the International Monetary Fund for help.

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.

Poland has stated its intention to hold a eurozone referendum in 2010. At the same time, the government has rejected criticism over its budget deficit.

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.

Monetary Affairs Commissioner Joaquín Almunia has accused member states of applying tricks learnt from the corporate sphere to hide deficits in breach of the Stability and Growth Pact.

The Portuguese government's announced tax increases and spending cuts follow an audit indicating a 6.8% debt/GDP ratio this year.

There is to be no such thing as a 'good' deficit. In the context of Stability and Growth Pact reform, Eurogroup President Jean-Claude Juncker has ruled out the possibility that certain categories of spending be exempt from the 3% deficit rule.

Early warnings and recommendations are key if EU countries don't want sanctions, says Commissioner Almunia at an EMU and economic governance debate.

The strict rules of the Stability and Growth Pact are set to be changed in a softening of the "exceptional circumstances" that allow for excessive budget deficits.

Following new French calls for more flexibility in applying the stability pact, Romano Prodi took a tough stance on the obligation of the eurozone members to stick to the 3 per cent ceiling on budget deficit.