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All euro members' budgets comply with fiscal rules

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Philip Lane, chief economist at the European Central Bank. Photo: Bloomberg

Philip Lane, chief economist at the European Central Bank. Photo: Bloomberg

Bloomberg

Philip Lane, chief economist at the European Central Bank. Photo: Bloomberg

Ireland's Budget 2020 is one of nine in the euro area deemed fully compliant with EU budget rules under the Stability and Growth Pact introduced after the financial crisis.

Ireland is expected to hit medium-term budgetary objectives in 2020, even with anticipation that next year's budget surplus will be less than previously forecast.

The European Commission yesterday presented its opinions on all 19 eurozone members' draft budget plans for next year.

No member state's draft budget showed serious non-compliance with the Stability and Growth Pact.

Nine members - including Ireland - are fully compliant, two are broadly compliant and eight have plans that may pose a risk of non-compliance.

Meanwhile, Philip Lane, now chief economist at the European Central Bank, said he does not believe the euro area will fall into recession, even though growth is less than expected.

There will be a recovery in the next year or two, the former Central Bank of Ireland governor said in an interview with Italy's 'la Repubblica'.

"The economy is growing less quickly than what we hoped. The dynamic is disappointing but not negative. We expect a recovery in the next year or two," Mr Lane said.

Inflation, stalled at around 1pc in the euro area, is "unsatisfactory", he said.

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