Press Release: Commission sees the United Kingdom as just on track to correct its excessive deficit by end of the 2006/2007 financial year

The United Kingdom seems just on track to correct its excessive deficit by the end of 2006/07, although the actual adjustment may fall short of that recommended by the Council. In its assessment of the follow-up to the January 2006 Council recommendation concluding that an excessive deficit exists in the UK, the European Commission notes that while GDP growth is expected to be better than originally envisaged, the deficit correction remains vulnerable to negative surprises, given the lack of a safety margin against exceeding the 3% reference value again. The Commission will continue to monitor the situation, particularly in light of the significant risks surrounding the outlook for the public finances.