EC Launches Excessive Deficit Procedure Against 6 Member States, Romania Not Analyzed Yet

EC launched the excessive deficit procedure against Greece, Spain, France, Ireland, Latvia and Malta, as all of them breached the 3% of the GDP reference value, set up in the Maastricht Treaty.

“For the Member States where the general government deficit climbed above the 3% reference value in 2008, the Commission today adopted excessive deficit reports. Exceptional circumstances are considered where appropriate,” Economic and Monetary Affairs Commissioner Joaquin Almunia said in a press release.

The EC also analyzed the Stability and Convergence Programmes of other 11 member states, not including Romania.

Romanian Finance Minister Gheorghe Pogea recently said that he does not expect Romania to be sanctioned for an excessive deficit in 2009, adding that such a procedure would take place in the next year after exceeding 3% of the GDP, and only if it was not adjusted.

Romania might avoid EC’s sanctions if it observes its engagements of keeping the budget deficit below 2% of GDP in 2009, Pogea also said.

The Romanian authorities said they would approve several measures to cut the budget expenses, to avoid the excessive deficit procedure.