Luxembourg, 20/06/2014 (Agence Europe) - On Friday 20 June, the Ecofin Council decided to end the excess deficit proceedings against six member states: Austria, Belgium, Denmark, the Netherlands, the Czech Republic and Slovakia.
Going along with the recommendations made by the European Commission, the finance ministers say that the six countries' public deficits will remain below 3% of GDP for a sustained period (at least until 31 December 2015).
Euro Commissioner Olli Rehn said that this means that the number of infringement proceedings still running since the beginning of the financial crisis has been reduced to eleven. This was Rehn's last Ecofin Council before becoming an MEP in July. He said the gradual return to normal public finances was a sign that the new budget rules were working.
European Semester. Rehn welcomed the endorsement of the European Commission's social and economic recommendations for 26 member states (all bar Greece and Cyprus) and the eurozone as a whole, with very few changes on the original document. He said the recommendations were vectors for the structural reforms to be introduced.
Slovenia has challenged the deadline for privatisation of banks stipulated in its recommendation. Rehn said there was no reason to believe that this would have an impact because the date had already been clearly committed to by the Slovenian government and was expected by the markets.
The European summit on 26/27 June is expected to approve the recommendations, which member states will then incorporate into their draft budgets for 2015 (over which the Commission now has scrutiny). (MB)