Thursday, 12 November 2009The European Union set budget deficit deadlines for several EU member states warning to bring their budget deficits down below 3 percent.
On Wednesday, November 11, the European Commission reached a decision that 13 members of the EU should cut their excessive budget deficits to meet the optimum criteria of 3% between the years of 2012 and 2014/15. Trying to offer realistic deadlines for each state, the Commission proposed deadlines for Belgium and Italy by 2012. Austria, the Czech Republic, Germany, Slovakia, Slovenia, the Netherlands and Portugal were told to take action and get their budget deficit back in line by 2013.
France, Spain, Ireland and Britain are also among those whose deadlines were extended. Accordingly, the Commission extended the earlier deadlines set for these countries, that is, 2013 for France and Spain, 2014 for Ireland and the financial year of 2014/15 for Britain.
The global financial crisis has been the crucial reason for EU member states to have broken the rule of 3%. The ongoing economic crisis has created a burden on public finances in the EU since the revenues fell and social expenditures rose up.
By Fatma Yilmaz-Elmas (JTW)
|
Thursday, 12 November 2009
|
|
