Brussels, 06/09/2007 (Agence Europe) - On 12 September, the European Commission will take a stance on the follow-up to be given to excessive deficit procedures against the United Kingdom and the Czech Republic. London, which has been the object of excessive deficit procedure since early 2006, should soon come to the end of the procedure, whereas Prague will not escape a further recommendation.
As he has already intimated, the commissioner for economic and monetary affairs, Joaquin Almunia, is next week expected to suggest that the College of Commissioners repeal the procedure, given that the United Kingdom has brought its deficit down below the 3% mark after the 2006-2007 budgetary period (EUROPE 9116). According to the latest data forwarded to Eurostat in July, the British public deficit for the past financial period (from 1 April 2006 to 31 March 2007) amounts to 2.7% of GDP. Predictions for 2008 are good. According to the Commission's spring economic forecasts, the British deficit will be 2.6%.
The Czech Republic, which dropped below the 3% mark last year, is expected to have an excessive deficit again this year (3.9% of GDP) and next year also (3.6%), Mr Almunia said in May this year (EUROPE 9421). The Council had then decided, on the basis of Article 104§8 of the Treaty, that the Czech authorities had not taken adequate measures to come into line with the requirements set out in July 2004 - namely a return within the lines set out in the Stability and Growth Pact by end 2008 (EUROPE 9465). The commissioner had then pointed out that he would make a new recommendation (under Article 104§7) for correction of the Czech excessive deficit. (ab)