By the end of the year, the European Commission must draw up a list of recommendations to EU member states “to take effective measures to eliminate their deficit.”
The Council of the European Union has launched an investigation into seven EU countries over their excessive budget deficits. This was stated on Friday, July 26, in a statement published on the official website of the Rada.
Among the countries with large budget deficits are Belgium, France, Italy, Hungary, Malta, Poland and Slovakia. All of them have budget deficits of more than 4% of GDP last year, while according to EU rules, its maximum allowed amount is three percent.
Thus, Belgium’s budget deficit for 2023 will reach 4.4% of GDP, Poland – 5.1%, France – 5.5%, and Italy – 7.4%.
The European Commission is expected to give recommendations to countries in November.
In April 2024, the European Parliament approved a reform of the EU’s financial rules. Thanks to the changes, highly indebted member states will have more flexibility to reduce debts and reduce budget deficits.
Over the next three years, Russia will spend about 1.5 trillion. rubles, or about $17 billion, for government loans to “friendly” countries.
In the spring of 2024, Hungary took a 1 billion euro loan from three Chinese banks. This is the largest amount Budapest has ever acquired.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.