Deficit procedure necessary

EU warns 7 countries about high levels of new debt

(Bild: ©artjazz - stock.adobe.com)

The EU Commission is targeting France, Italy and other countries due to excessive budget deficits. On Wednesday, it confirmed that they have excessive new debt, which makes an excessive deficit procedure necessary. France is currently under particular scrutiny on the financial markets due to President Emmanuel Macron's re-election decision. Belgium, Malta, Slovakia, Poland and Hungary also have excessive budget deficits in the view of the EU Commission.

The European Commission's recommendation to initiate an excessive deficit procedure still has to be approved by the EU finance ministers in July, which is considered a formality. In November, Brussels will then present proposals on how quickly the deficit should be reduced.

EU reprimanded Austria last year for dependence on Russian gas
Last year, the EU Commission criticized Austria for its high dependence on Russian gas and called for a faster expansion of renewable energies. The Brussels authority also saw a need for action in the domestic healthcare sector. Austria's challenges also included the untapped potential of women, low-skilled workers, older workers and people with a migration background on the labor market. The country reports take stock of the budgetary situation and assess the progress made in implementing the recommendations of previous years.

EU checks compliance with Maastricht ceilings
In an annual cycle, the EU Commission reviews the economic, budgetary and social policies of governments and issues targeted advice for corrections. This so-called European Semester is intended to help coordinate the policies of the EU member states. Excessive budget deficits and mountains of debt, as well as a backlog of reforms, are to be avoided. The overriding aim is to comply with the Maastricht ceilings of a maximum budget deficit of three percent and total debt of 60 percent.