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EU: Romania Has Until 2012 To Lower Budget Gap

European Union finance ministers on Tuesday agreed to a one-year extension until 2012 of the deadline by which Romania and Lithuania must bring their budget deficits down to below 3% of the gross domestic product.
EU: Romania Has Until 2012 To Lower Budget Gap
16 feb. 2010, 15:26, English

The ministers also gave Malta until 2011, instead of 2010 to take corrective measures and lower its budget gap to comply with the reference value set by the EU treaty.

„The European Union Council extends by one year the deadline for correction of the deficits, on account of a worse-than-expected deterioration in their economies since July 2009, when the excessive deficit procedures were opened and the Council issued its initial recommendations,” the Council said in a statement.

According to the decision, Romania must implement the measures included in its 2010 budget, „whilst avoiding any further deterioration, and to ensure an annual fiscal effort of 1.75% of GDP over the 2010-2012 period.”

All three countries must convince the Council that they’ve taken dully corrective action to reduce their budget deficits by August 16, 2010.

Romania has pledged to reduce its government deficit to 5.9% of the GDP in 2010, from 7.2% of GDP last year.