EU issues warning to Spain and Italy on budgets

EU issues warning to Spain and Italy on budgets

European Union officials have warned Spain and Italy that their budget plans risk breaching EU rules aimed at keeping deficits and debt under control.

For the first time, the EU’s executive commission is reviewing draft budgets before national parliaments pass them. The review is aimed at preventing budget troubles from undermining the euro.

Italy, the number three economy in the 17-country eurozone, was cited on Friday for not sufficiently addressing its heavy debt load. Spain, the number four economy, was warned its deficit would breach the EU limit of 3% of annual economic output.

Smaller euro members Finland, Luxembourg and Malta were also warned.

The debt and deficit rules were toughened after government debt grew to unmanageable levels in several eurozone countries, threatening the currency union with break-up.

More in this Section

Stop right now: Tesco removes Mel B advert in UK following Spice Girl’s complaintStop right now: Tesco removes Mel B advert in UK following Spice Girl’s complaint

Uber CEO expresses regret over comments about journalist’s murderUber CEO expresses regret over comments about journalist’s murder

UK economy ‘spluttering’ despite return to growth, say analystsUK economy ‘spluttering’ despite return to growth, say analysts

Brexit blamed as optimism among Irish businesses falls to nine-year lowBrexit blamed as optimism among Irish businesses falls to nine-year low


Lifestyle

Helen O’Callaghan on the dangers of products high in caffeine.The dangers of energy drinks full of sugar

When bride-to-be Alma Clohessy enlisted her mother Rita’s help in planning her wedding, they made the most of every precious moment together.Wedding of the Week: 'It was the best, yet most emotional day of my life'

As you may be aware, new rules around motor insurance documentation have been introduced. The rules are aimed at improving transparency for consumers but a broker is warning they may have unintended consequences and could cause some confusion among policy holders.Drive a hard bargain for better car insurance

When Peter Ryan lost 90% of his vision in his early 20s, his readjustment was emotionally painful, but maturing, says Helen O’CallaghanA new way of seeing the world: Peter Ryan talks about losing 90% of his sight in his early 20s

More From The Irish Examiner