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Commission issues Opinions on Member States’ Draft Budgetary Plans

On 21 November, the Commission adopted Opinions on whether the 2019 Draft Budgetary Plans (DBPs) of euro area Member States comply with the Stability and Growth Pact (SGP).

date:  22/11/2018

See alsoDraft budgetary plans 2019

On 21 November, the Commission adopted Opinions on whether the 2019 Draft Budgetary Plans (DBPs) of euro area Member States comply with the Stability and Growth Pact (SGP). Under the preventive arm of the SGP, the Commission confirmed the existence of a particularly serious case of non-compliance with the Recommendation addressed to Italy by the Council on 13 July 2018. For ten Member States – Germany, Ireland, Greece, Cyprus, Lithuania, Luxembourg, Malta, Netherlands, Austria, and Finland – the DBPs were found to be compliant with the SGP in 2019. For three Member States – Estonia, Latvia and Slovakia – the DBPs were found to be broadly compliant, although the plans might result in some deviation from the country's medium-term budgetary objective (MTO) or the adjustment path towards it. For four Member States – Belgium, France, Portugal and Slovenia – the DBPs pose a risk of non-compliance due to a possibly significant deviation from the adjustment paths towards the respective medium-term budgetary objective. Under the corrective arm of the SGP (Excessive Deficit Procedure), Spain's headline deficit is projected to fall below 3% next year and the country is set to exit the Excessive Deficit Procedure. Spain would then become subject to the preventive arm of the Pact and its DBP was found to be at risk of non-compliance.