MNI: UK Set to Exit EU's Excessive Deficit Procedure

--UK Public Deficit At 2.3% of GDP in 2016-17

--Move Will Leave Only 2 EU Countries In EDP 

--Romania To Get New Warning On Lack Of Structural Reform

by Jean Comte

     BRUSSELS (MNI) - The 28 European Union finance ministers are expected to

approve next Tuesday the end of the UK's Excessive Deficit Procedure (EDP),

which was launched in July 2008, Market News understands.

     The move follows the assessment that the British public deficit is now

below the 3% threshold allowed by the EU treaties, as it fell to 2.3% during the

2016-2017 financial year. It was up to 3.2% in 2008, when the EDP was triggered,

and hit a high of 10% in 2009/10 at the height of the financial crisis.

     The decision will leave just 2 EU countries in the EDP: France and Spain,

which are respectively expected to reach the 3% threshold in 2017 and 2018 and

lead to the formal closure of the EDP in 2018 and 2019.

     --Romania to be asked to strengthen efforts

     Finance ministers are also expected to establish that Romania has taken no

effective action to correct its lack of structural reform.

     Romania has been in the Significant Deviation Procedure (SDP) -- a

procedure created for countries which comply with the 3% rule, but which are not

undertaking enough structural reform toward their medium-term budgetary

objective.

     Following a recommendation from the EU Commission, ministers will issue a

new recommendation, asking Romania to achieve a "structural adjustment of at

least 0.8% of GDP in 2018".

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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