Brussels, 06/05/2014 (Agence Europe) - On Monday 5 May, the Eurogroup expressed concern about Austria's plan to move away from its budget adjustment trajectory.
In a press release, the Eurogroup says that it shares the European Commission's concerns that Austria's planned budget for 2014 would so significantly deviate from the adjustment trajectory that it would run the risk of breaking stability and growth pact rules.
Eurozone finance ministers welcome the pledge made by the new Austrian government that same day to introduce additional measures to cover the risk. The Eurogroup asks the Commission to verify whether the measures are appropriate in the light of the country-specific recommendations it will be publishing on 2 June. The European Commission's Spring Economic Forecasts suggest growth will rise in Austria from 0.4% in 2013 to 1.6% in 2014, but the public deficit will rise sharply from 1.5% in 2013 to 2.8% in 2014 (see EUROPE 11072). (MB)