The European Commission published its opinion on the 2014 draft budgetary plans for the Eurozone and though the region's public debt is expected to stabilize, five member states are in danger of non-compliance.
The Commission provided its opinion on individual member's draft budgetary plans and started its report off by saying that it is "reassuring that no draft budgetary plan is found in serious non-compliance". In fact, the Commission noted that public debt is expected to stabilize in the euro area as a whole.
However, the report also warned that only Germany and Estonia have attained their mid-term budgetary objective (MTO), "implying that further consolidation is necessary".
The Commission signaled Spain, Italy, Luxembourg, Malta and Finland as the five countries whose plans pose a risk of non-compliance. More specifically, it pointed out that Spain and Malta risk not complying with the recommendations of the Excessive Deficit Procedure. The danger with Italy appears to be even more grave as the report indicated that "there is a risk that on current plans the debt reduction rule would be breached in 2014". For Luxembourg and Finland, the Commission highlighted a "risk of significant deviation" from the adjustment path set out to obtain their MTOs.
In a less dangerous manner, Belgium, Austria and Slovakia were found to be "broadly compliant", meaning there could be some deviation in achieving MTOs.
France, the Netherlands and Slovenia scraped by. The Commission considered them to be compliant but "without any margin for possible slippage". Any deviation would put the correction of excessive deficits at risk, the report read.
Source: LiveCharts
The Commission provided its opinion on individual member's draft budgetary plans and started its report off by saying that it is "reassuring that no draft budgetary plan is found in serious non-compliance". In fact, the Commission noted that public debt is expected to stabilize in the euro area as a whole.
However, the report also warned that only Germany and Estonia have attained their mid-term budgetary objective (MTO), "implying that further consolidation is necessary".
The Commission signaled Spain, Italy, Luxembourg, Malta and Finland as the five countries whose plans pose a risk of non-compliance. More specifically, it pointed out that Spain and Malta risk not complying with the recommendations of the Excessive Deficit Procedure. The danger with Italy appears to be even more grave as the report indicated that "there is a risk that on current plans the debt reduction rule would be breached in 2014". For Luxembourg and Finland, the Commission highlighted a "risk of significant deviation" from the adjustment path set out to obtain their MTOs.
In a less dangerous manner, Belgium, Austria and Slovakia were found to be "broadly compliant", meaning there could be some deviation in achieving MTOs.
France, the Netherlands and Slovenia scraped by. The Commission considered them to be compliant but "without any margin for possible slippage". Any deviation would put the correction of excessive deficits at risk, the report read.
Source: LiveCharts
