EU TO Discipline Member States For Overspending
Posted by Neil Payne on February 18th, 2009
The European Union has announced that it will be initiating disciplinary proceedings against 6 member states for breaking rules governing limits on budget deficits.
The current ruling, under the EU’s Stability and Growth Pact, proscribes that budget deficits should be no more than 3% but latest figures suggest that Ireland, Spain, Latvia, France, Greece and Malta all exceeded this limit in 2008 and are set to do so again in 2009.
The EU have acknowledged that much of this spending is the result of stimulus packages engineered to break the ongoing recession but has warned that it would issue a deadline of March for the member states to bring their public finances back into line with EU policy.
To read more click on the links below.
> BBC News coverage
> EU reports on member states Stability and Convergence Programmes
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