Brussels, 09/03/2016 (Agence Europe) - European Commission has officially voiced its concerns regarding the execution of the 2016 budget of six member states - Spain, Belgium, Croatia, Finland, Italy and Romania - which it believes are not respecting their budgetary obligations.
For Spain, the Commission's call to order takes the form of an autonomous recommendation, a regular early-warning instrument for the countries of the eurozone, which was brought in to the European budgetary rules at the most recent revision of the Pact ('two-pack' regulation). Under this recommendation, the Spanish authorities are advised to take measures to guarantee a “timely and durable” correction of the excesses deficit, including by making full use of the tools to control for slippages at the sub-central government level. Madrid is called upon to respond to the Commission's request when it submits a revised draft budget for 2016 or, the latest, in its stability programme, to be submitted in April. However, following the general elections of December, Spain is still without a government with a majority in the national parliament.
According to the Commission's winter forecasts, the Spanish deficit in nominal terms is expected to stand at 4.8% of GDP in 2015 and at 3.6% in 2016, whereas the deficit trajectory laid down at European level is as follows: 4.2% of GDP in 2015 and 2.8% in 2016. The discrepancy comes, amongst other things, from the reform of income tax, which has had a negative impact on revenue.
The 2016 budgets of seven countries (Belgium, Spain, Italy, Lithuania, Austria, Portugal and Slovenia) risk non-compliance with the Stability Pact (see EUROPE 11507). (Original version in French by Mathieu Bion)