Brussels, 28/01/2014 (Agence Europe) - On Tuesday 28 January, the Ecofin Council decided to launch excess deficit proceedings against Croatia.
Zagreb is urged to correct its deficit by 2016 and must demonstrate by the end of April this year that it is already taking action to this effect. The measures it is taking will be assessed by the European Commission in the spring, said Euro Commissioner Olli Rehn on Tuesday 28 January 2014.
Croatia's public deficit will be above the 3% of GDP cut-off point in 2013, and is expected to continue to rise in 2014 and 2015 (the Commission's autumn economic forecasts say it will rise to above 6% in 2015). The Council of Ministers recognises that this is in part due to the deep economic recession in the country, but all the same, they say that the situation is “exceptional' but “not temporary”, so measures need to be taken. Zagreb is therefore urged to reduce its deficit to 4.6% of GDP this year, 3.5% in 2015 and 2.7% in 2016. The high deficit and lack-lustre economy is also impacting on public debt which, at current policy, would exceed 60% of GDP this year. (EL/transl.fl)