Germany and France have been publicly rapped on the knuckles by the European Commission over their budgets
Published:
14 November 2002 y., Thursday
This is because of projections that Berlin will exceed EU deficit limits this year and Paris risks doing the same next year.
Monetary Affairs Commissioner Pedro Solbes downplayed having launched disciplinary action, saying the EU executive had seen this coming; 'our policy system is really quite together,' he said in Brussels. 'If it weren't, monetary matters would face problems.'
Germany's deficit is forecast at 3.8 percent of GDP this year, 3.1% next year; the outlook for France is 2.7 percent and 2.9 percent. Three percent is the limit.
The Commission's moves showed it is serious about enforcing the euro zone's Stability and Growth Pact rules, in spite of economic slowdown and anticipation of a slight rise in unemployment. Germany faces the more serious charge; the ultimate sanction of the discipline process is a heavy fine.
The punishment is designed to deter states from jeopardising monetary union by free-and-easy spending. German Finance Minister Hans Eichel admitted he was in for a tough time.
Berlin's looming tax revenue shortfall poses an extra challenge for him.
Šaltinis:
euronews.net
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Most EU countries continue to meet deadlines for incorporating single market rules into national law, contributing to economic growth and job creation.
more »
Japanese officials unveil their new bullet train, capable of travelling at speeds of 320 km per hour (198 miles per hour).
more »
The first International Security Technology Exhibition, KIPS 2011, will be held on 23-26 February 2011 in Kiev (Ukraine). The motto of the exhibition is ‘There can never be too much security!’
more »
The world's highest restaurant opens in Dubai, United Arab Emirates, located 400 metres above ground in Burj Khalifa, the world's tallest tower.
more »
The rights of consumers will be clarified and updated, whether they shop at a local store or buy goods on line, under new EU rules as amended by the Internal Market Committee on Tuesday.
more »
MEPs on Wednesday gave their green light for the Council to conclude an Interim Economic Partnership Agreement with Papua New Guinea and Fiji, two countries of the Pacific Region with significant exports to the EU.
more »
Report sets 10 priorities for tackling the bloc's main economic challenges, launching the first ever ‘European semester'.
more »
China's first capsule hotel ready to open its doors in Shanghai, aims to capture slice of booming leisure budget travel market.
more »
Declaration by Michel Barnier on the start of three new authorities for supervision.
more »
On 1 January, Estonia adopted the euro as its official currency and the changeover is running smoothly and according to plan.
more »