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EU warns 8 countries for budget spending beyond current agreed fiscal framework

2025-11-25 20:29:00, Ekonomi CNA

EU warns 8 countries for budget spending beyond current agreed fiscal framework

The European Commission warned today that public spending in countries such as Spain, France, Hungary, Malta and the Netherlands, Croatia, Lithuania and Slovenia, is moving away from agreed fiscal paths and risks falling into breach of EU budget rules.

Under the current fiscal framework, EU governments must keep their budget deficits below 3% of GDP and public debt below 60% of GDP.

The commission must assess not only each country's budget for the coming year, but also whether their long-term deficit plans are credible.

"We call on member states where there are risks to take the necessary measures to ensure compliance. This is particularly important for member states under the excessive deficit procedure," European Commissioner for the Economy Valdis Dombrovskis told reporters in Strasbourg. 

The warning comes as EU capitals have been given more fiscal flexibility to strengthen their defence capabilities and boost their industrial investment, partly in response to US President Donald Trump's demands that allies spend at least 5% of their GDP on defence by 2035./CNA





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