14 January 2003, 12:04  EU to censure States over public finances

The European Commission is to slap the wrists of three of its largest members over for their lack of progress in improving their public finance. In a draft document due to be approved at its meeting in Strasbourg tomorrow, the Commission will reportedly castigate Germany, France and Italy for having made the "least effective follow-up" to their commitments on economic policy. The censure comes less than a week after the Commission said Germany must begin taking action on cutting its budget deficit by May or face hefty fines. The state's deficit breached the EU's 3pc limit last year and may do so again in 2003.
A pay deal negotiated last week with public sector union Verdi, which represents three million workers, is likely to put further pressure on the Exchequer finances. The document summarises the progress of EU countries in implementing economic policy guidelines agreed with the Commission. Denmark and Sweden emerge as star performers overall, following by a middle group that includes Ireland, Belgium, Greece, Spain, the Netherlands, Portugal and the UK. Lagging behind are Germany, France, Italy, Luxembourg, Austria and Finland//www.fxcentre.com

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