| Author (Person) | Barber, Tony |
|---|---|
| Series Title | Financial Times |
| Series Details | 18.3.10 |
| Publication Date | 18/03/2010 |
| Content Type | News |
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The European Commission examined March 2010 the updated stability and convergence programmes (SCPs) of Belgium, Bulgaria, Germany, Estonia, Ireland, Spain, France, Italy, the Netherlands, Austria, Slovakia, Sweden, Finland and the United Kingdom. These assessments have to be seen against the background of the sharp economic and financial crisis which has had a major impact on public finances. Reflecting the working of automatic stabilisers and discretionary stimulus measures implemented in line with the European Economic Recovery Plan (EERP) to cope with the exceptional economic circumstances, a large majority of Member States is currently subject to the excessive deficit procedure following corresponding Council decisions in 2009. Of the countries assessed in March 2010, only Bulgaria, Estonia, plan to keep their general government deficits below the 3% of GDP reference value set in the Stability and Growth Pact over the programmes' period. Overall, for the majority of the fourteen programmes, the growth assumptions underlying the budgetary projections are assessed as rather optimistic, implying that budgetary outcomes might be worse than targeted. Furthermore, in several cases, the budgetary consolidation strategy is not sufficiently backed up by concrete measures from 2011 onwards. In particular, the European Commission warned the eurozone’s four largest countries – Germany, France, Italy and Spain – that their economic growth forecasts for the next three years were too optimistic, putting at risk their ability to cut their budget deficits in accordance with the European Union’s fiscal rules. |
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| Subject Categories | Economic and Financial Affairs |
| Countries / Regions | Europe |
