Press Release: Commission assesses remainder Stability and Convergence Programmes; takes EDP steps for Hungary, Lithuania, Malta, Poland and Romania

On 24 June, 2009, the European Commission examined the updated Stability and Convergence Programmes 1 (SCPs) of Austria, Belgium, Romania, Slovenia and Slovakia, the last of the 2009 vintage. As for the other EU countries, budgetary positions were estimated to deteriorate markedly, reflecting the ongoing recession and the economic stimulus packages adopted in line with the European Economic Recovery Plan (EERP) that called for timely and targeted fiscal measures in Member States with fiscal room for manoeuvre. In all five countries, the specified budgetary targets were also found to be subject to downside risks. Based on the April notifications of the fiscal outcomes for 2008, the Commission also concluded that Lithuania, Malta, Poland and Romania are running excessive deficits in the sense of Article 104.7 of the EU Treaty and recommends deadlines for their correction. The Commission also recommended to the Council to adopt a revised recommendation under Article 104.7 setting a new deadline for the correction of the deficit in Hungary. The assessments and recommendations were based on the Commission's Spring forecast and on other data/information. The proposed deadlines took into account the starting fiscal position and the scope for manoeuvre in line with the EERP, the economic outlook, macroeconomic imbalances and financing conditions. The Ecofin Council is expected to discuss the recommendations at the upcoming July gathering. At that point, the Member States concerned will have six months to define and start implementing measures to correct the excessive deficit.

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