LUXEMBOURG (MNI) – European Union finance ministers Tuesday agreed
to accelerate their fiscal consolidation strategies, Spanish finance
minister Elena Salgado told reporters after a meeting here.
European Union rules require countries to limit their budget
deficits to 3% of GDP each year but the financial crisis pushed up
spending and kept a lid on tax receipts, sending many deficits well
above this limit.
“All the EU member states will start fiscal consolidation at the
latest in 2011,” European Commissioner for Economic and Monetary
Affairs, Olli Rehn said. “Italy and Denmark have adopted necessary
consolidation measures for the years ahead,” he added.
“Germany [is] in the process of making their plans concrete,” he
said. He said it seemed that those measures would result in Germany
hitting its 3% deficit target in 2013.
“Spain and Portugal have both recently announced revised deficit
targets for this year and next as well as new substantial measures…We
welcome that both [have made a] strong commitment,” he said.
“We welcome the new targets and the new measures announced by
Spain,” he said, adding that the Commission would revisit the topic next
week when it publishes its official verdict.
–Luxembourg: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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