European Comission started procedure against Ireland
European Commission launches excessive deficit procedure against the Irish government, which has authorized its budget deficit to grow out of control, according to The Irish Times. Today commissioner for economic and monetary policies Joaquin Almunya has started proceedings against Ireland for the budget deficit, which is expected to reach 5.5 percent this year and 6.5 percent in 2009.
Under the Stability and Growth Pact of the European Union requires member countries to maintain the ratio deficit / GDP ratio under 3 percent and the debt / GDP - below 60 percent.
Under the pact government can be fined if it fails to bring its deficit below 3 percent over three or four years, although this is considered rather a theoretical possibility. In practice it has never applied. Now that the excessive deficit procedure was initiated by the Commission expected the government to a series of measures that may apply to set deficit under control. In an interview in The Irish Times last Friday Mr Almunya said that the deficit of 5.5 percent is excessive and is not even close to the relative value of 3 percent, to not use the clause for exceptional circumstances. "The Stability and Growth Pact is not for fines. It is not intended to find fault Member States and seek wines, according Almunya, "In some cases, peer pressure is needed to use the European dimension and multilateral surveillance to cause governments to adopt adequate measures ... It also supports Government to implement policies that sometimes are not very popular. "
Labels: Financial News
posted by Zoritza Petrova @ 11:08 PM
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