Brussels, 03/10/2011 (Agence Europe) - European finance ministers will discuss coordinated, differentiated strategies on Tuesday 4 October to phase out the special measures taken in 2009 to boost the economy after the subprime financial crisis and will discuss the measures using a report by the European Commission (see EUROPE 10153). They will say that public finance is the top priority, but should be accompanied by structural reforms to free up the greatest growth potential. At present, no fewer than 23 EU Member States are subject to excess deficit proceedings.
A draft conclusions document that might have been published on Monday 3 October says that Member States are experiencing different economic situations, but the downward risks to the economy and pressure from the money markets are increasing. The EU27 is divided into four groups - countries receiving international financial aid (Greece, Ireland and Portugal), which are required to meet the budget targets set out in their austerity programmes and to rapidly introduce the planned structural reforms; - countries subject to market pressure, like Spain and Italy, which must meet the targets set in the most recent Stability and Growth Programme or most recent budget plans and, where necessary, must be prepared to introduce additional consolidation measures; - member states with a high budget deficit or which are lagging behind in consolidating their budgets, which are urged to keep up the momentum and give details of planned measures to this end to be introduced either this year or next; and - the four member states with public deficits of less than 3% of GDP, like Finland and Estonia, which may decide to use the room for manoeuvre allowed under the Stability and Growth Pact to let automatic stabilisers function, stabilisers like the reduction in tax income and increased social spending as a result of the economic slowdown, while ensuring that their finances will be viable in the long-term. (MB/transl.fl)