BRIEF: Brussels Says Only 7 States Face Excess Deficit Process
European Commission name France and Italy amongst countries facing EDP action.
The EU Commission said Wednesday has taken the first step towards opening excessive deficit procedures against seven member states; Belgium, France, Hungary, Italy, Malta, Poland and Slovakia.
While expectations were that around 12 states could face EDPs, the Commission took into account the "relevant factors" including whether debt-to-GDP is below 60% and any excessive deficit remains "close" to 3% and "temporary".
The Commission reviewed 12 states to assess compliance with EU deficit rules: Belgium, Czechia, Estonia, Spain, France, Italy, Hungary, Malta, Poland, Slovenia, Slovakia and Finland, but concluded only seven warranted the opening of an EDP. In a break with tradition and as reported by MNI Tuesday, the Commission has not this year issued quantitative fiscal guidance alongside today's EDP announcement. (see MNI: Multi-Year Fiscal Plans For EU States Delayed Until Autumn- Officials)