independent

Thursday 17 April 2014

EU warns Italy and Spain on budgets

Italian Finance Minister Fabrizio Saccomanni, right, speaks with Danish Economy Minister Margrethe Vestager during a meeting of EU finance ministers (AP)

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 No 3 economy in the 17-country eurozone, was cited on Friday for not sufficiently addressing its heavy debt load. Spain, the No 4 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.

AP

Press Association

Also in this Section

Classifieds

CarsIreland

Independent Shopping.ie

Meet, chat and connect with
singles in your area

Independent Shopping.ie

Meet Singles Now

Findajob

Apps

Now available on

Independent.ie on Twitter

More

Most Read

Independent Gallery

Your photos

Send us your weather photos promo

Celebrity News