Press Release: Excessive Deficit Procedure steps: the Stability and Growth Pact as the anchor for fiscal exit strategies

Under the budgetary surveillance powers conferred by the EU Treaty, on 11 November 2009 the European Commission proposed to the Council to set 2013 as the deadline for the correction of the budget deficits in Austria, the Czech Republic, Germany, Slovakia, Slovenia, the Netherlands and Portugal. For Belgium and Italy, which will also have a deficit above 3% in 2009, the comparatively limited size of the deficits and the existence of high debt ratios calls for an earlier deadline of 2012. The Commission also assessed whether 'effective action' had been taken in Greece, Spain, France, Ireland and the UK, in response to Council recommendations of last April. It proposed that the Council concludes that Greece has not taken effective action. For the other four countries, it was concluded that they have taken action, but the worsening of the economic situation compared with the Commission's January forecasts justifies revising the existing recommendations and therefore extending the deadlines by one year as foreseen by the Stability and Growth Pact, i.e. 2013 for France and Spain, 2014 for Ireland and financial year 2014/15 for the UK.

ESO: Background information: European Commission: DG Economic and Financial Affairs: Stability and Growth Pact http://www.europeansources.info/record/stability-and-growth-pact/

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