Deadline to Rein in Budget Deficits

With five countries expecting to exceed the 3% GDP allowed by the EU, the European Commission has warned EU members they must rein in budget deficits.

The eurozone has not escaped the crippling effects of the economic crisis, and concerned about the effect on its stability, the Commission is proposing deadlines for the five countries to comply with the cap.

Ireland has until 2013 to bring its budget deficit in line, France and Spain have until 2012, Greece has a time limit of 2010 and the UK’s deadline would be 2013-14.

Being outside the eurozone the UK is not bound to comply with the rules but tries to respect them.

The cap of 3% has been imposed to prevent imbalance within the eurozone, which could undermine confidence.

Budgets shortfalls of more than 5% in France, nearly 6% in Spain, 11% in Ireland and at least 9% in the UK were predicted by the Commission last year.

To find out more about the EU’s excessive deficit procedure click here.

Last Updated: 1. 4. 2009 13:14:54 By Charlotte Jacques