Assessing the draft budgets of all 19 Eurozone countries, the European Commission concluded that eight of them, they do not meet the criteria of the stability Pact and growth.The European Commission does not exclude that in 2020, eight countries will break the rules of the stability Pact and growth, to be followed by members of the Eurozone. We are talking about Belgium, Spain, France, Italy, Portugal, Slovenia, Slovakia and Finland informed the Commission ERUs Brussels on Wednesday, November 20, after examining the draft budgets of the Eurozone countries next year.
Evaluation of the European Commission, the budgets of the other 11 Eurozone countries do not violate the rules of the stability Pact, although in the case of Estonia and Latvia this was concluded with reservations.
“Countries with excessive debt, as Belgium, France, Italy and Spain should be used to reduce the debt burden of funds that have accumulated because of low interest rates,” said Vice-President of the European Commission Valdis Dombrovskis, responsible for financial matters. In turn, the European Commissioner for the economy Pierre Moscovici urged countries with good financial performance to new investment.
The criteria of the stability Pact and growth
The Eurozone consists of 19 of the 28 countries of the European Union. Currency the Euro is in circulation in several countries outside the EU. The Pact of stability and growth provides in particular that the amount of public debt should not exceed 60% of GDP and the budget deficit remained below 3% of GDP. To have violated these requirements of the country can be subject to large fines.