This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-37997519
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
EU warns eight nations on budget deficit | EU warns eight nations on budget deficit |
(about 3 hours later) | |
The European Commission has warned that eight eurozone countries, including Italy, are at risk of breaking EU rules because of excessive budget deficits. | The European Commission has warned that eight eurozone countries, including Italy, are at risk of breaking EU rules because of excessive budget deficits. |
Under EU rules, member states are not supposed to run annual deficits greater than 3% of their total economic output. | Under EU rules, member states are not supposed to run annual deficits greater than 3% of their total economic output. |
But the Commission, which has the power to oversee eurozone countries' draft budgets, said the eight risked "non-compliance" in 2017. | But the Commission, which has the power to oversee eurozone countries' draft budgets, said the eight risked "non-compliance" in 2017. |
The others include Spain and Portugal, which have already had a close call. | The others include Spain and Portugal, which have already had a close call. |
EU Economic Affairs Commissioner Pierre Moscovici sought to downplay the negative opinion against Italy, pointing to the extra costs of handling a series of earthquakes and the migration crisis. | |
"For Italy, a significant part of deviation is due to the costs associated with seismic activity in the country, which has been very serious this year and dramatic," he said. | "For Italy, a significant part of deviation is due to the costs associated with seismic activity in the country, which has been very serious this year and dramatic," he said. |
The EU "will take that into account", Mr Moscovici added. | The EU "will take that into account", Mr Moscovici added. |
Both Spain and Portugal escaped being fined over their budget deficits in August, when the EU Council gave them more time to conform to the rules and reduce their deficits. | Both Spain and Portugal escaped being fined over their budget deficits in August, when the EU Council gave them more time to conform to the rules and reduce their deficits. |
Last year, Spain's deficit was 5.1% of its gross domestic product (GDP), while Portugal's stood at 4.4%. | Last year, Spain's deficit was 5.1% of its gross domestic product (GDP), while Portugal's stood at 4.4%. |
The other five countries warned by the Commission were Belgium, Cyprus, Finland, Lithuania and Slovenia. | The other five countries warned by the Commission were Belgium, Cyprus, Finland, Lithuania and Slovenia. |
Although all EU countries are required to run budget deficits below 3% of GDP, only the 19 countries that use the euro as a currency can be fined. | Although all EU countries are required to run budget deficits below 3% of GDP, only the 19 countries that use the euro as a currency can be fined. |
Previous version
1
Next version