Tag: excessive deficit procedure

EU finance ministers have given Greece a month to convince the European Union – and financial markets – that emergency measures to tackle its growing deficits will put the country on the road to recovery. The ministers reiterated their support for Greece, but played their cards very close to their chests.

The European Commission on Wednesday (11 November) set deadlines of between 2012 and 2014/15 for 13 EU countries to slash budget gaps below 3% of GDP and said it would step up disciplinary budget action against Greece.

Having successfully reduced its budgetary deficit to below 3% of GDP for the second year running, France got the all-clear from European finance ministers, ending four years of disciplinary measures.

Based on a Commission recommendation, EU finance ministers want the UK to explain how it will bring its excessive deficit under the 3% limit within six months.

EU member states have scolded Hungary for missing its 2005 deficit target "by a sizeable margin" and for deciding not to take corrective action in line with previous government commitments.

The Commission has launched an excessive deficit procedure against Portugal after the country estimated a record deficit/GDP ratio of 6.82%.

The euro fell to an eight-month low after the Dutch referendum vote as the Commission renewed its call on member states to work within the revised stability pact's rules to improve the quality and sustainability of their public finances.