Commission recommends closing Poland's Excessive Deficit Procedure but launches new EDP procedure for the UK. It also examines Belgium's Stability Programme and issues policy advice for Romania
Article created 13 June 2008.
The Commission today adopted a recommendation advising the Romanian government to pursue with determination the consolidation of government finances while remaining on the path of economic reforms.
This two-pronged approach is necessary to address the growing imbalances in the economy, while allowing Romania to continue its fast convergence towards the average income levels in the EU.
On the basis of Poland's updated convergence programme for 2007-2010, which shows that the government deficit in Poland was reduced significantly below 3% of GDP in 2007 and is projected to remain below the ceiling also in 2008 and 2009, the Commission has recommended that the Council abrogate the excessive deficit procedure for Poland.
However, given the favourable growth conditions the envisaged progress towards the achievement of the medium-term objective, a structural deficit of 1% of GDP, is slow. Poland is therefore encouraged to strengthen the pace of its budgetary consolidation in 2008 and beyond, which should also help containing inflationary pressures.
In contrast, the Commission has initiated the excessive deficit procedure for the United Kingdom by adopting a report under Article 104(3) of the EU Treaty, following the UK authorities' March 2008 notification of a planned deficit of 3.2% of GDP in the financial year 2008/09.
Finally, the Commission has made a recommendation for a Council Opinion on the Belgium's updated stability programme for 2007-2011. While acknowledging the progress made in reducing government debt over the last 15 years, the European Commission encourages Belgium to strengthen the pace of budgetary consolidation in 2008 and beyond in order to achieve the medium-term objective of a general government surplus of 0.5% of GDP in structural terms by 2009.