Press conference by Olli Rehn, Vice-President of the EC, on the Excessive Deficit Procedure
Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, gave a press conference on the Excessive Deficit Procedure (EDP). The EC concluded that Hungary had not made sufficient progress towards a timely and sustainable correction of its excessive deficit. The EC proposed to move to the next stage of the EDP and recommended that the Council of Ministers decides that no effective action had been taken to bring the deficit below 3% of GDP in a sustainable manner.
Belgium, Cyprus, Malta and Poland - the other countries that were at risk of not meeting their deadlines of 2011 or 2012 to correct their excessive deficit - had taken effective action. Therefore, the EC considered that no further steps in the excessive deficit procedure were necessary for these four countries, though it would continue to monitor budgetary developments closely.
This was the first time the EC applied the new rules of the strengthened Stability and Growth Pact (SGP), which were part of the so-called "six-pack" on economic governance, which entered into force on 13/12/2011.
Olli Rehn at the podium Ref:P-020159