EU warns France, Spain, Italy over budget plans

Photo Credit: Olivier Hoslet/European Pressphoto Agency

Photo Credit: Olivier Hoslet/European Pressphoto Agency

The European Commission has warned that certain countries within the EU, namely Italy, Spain, and France, that they may not be in compliance with the EU’s new debt and deficit rules.

After submitting 2014 budgets, non-complying countries may have to revise their tax and spending plans before re-submitting them to national parliaments, according to the BBC.

Gulfnews.com reports that the warnings to France, Spain and Italy, come against past of difficult recovery from a recession and debt crisis, and of big social tensions in countries already implementing strict measures to correct public finances.

The BBC explains that “…under EU rules, eurozone member states are obliged to cut deficits until they achieve a balanced budget- and reduce public debt levels. The Commission gives countries some flexibility if their deficit is below the EU ceiling of 3% of gross domestic product (GDP) and their debt levels are falling.”

According to the Irish Independent, If a euro-zone country has clearly broken EU rules in its initial budget draft, the European Commission has the right to ask for a revised budget plan. Other countries at risk of breaking the rules included, Italy, Finland, Spain, Luxembourg and Malta.

Olli Rehn, the European Union’s commissioner for economic and monetary policy, is making an effort to stave off the kind of fiscal problems that nearly destroyed the euro (New York Times).

“Member states have given the commission the responsibility to issue these opinions, and I trust that they will thus be taken on board by national decision-makers,” Mr. Rehn said at a news conference in Brussels.

As the EU has had monumental struggles in the past decade, the European Commission continues attempting to partner the euro nations to prevent crisis during a period of fiscal revamping and supervision.

 

 

 

 

 
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