|
 |
|
|
|
|
|
|
Wednesday April 13, 07:21
|
|
Getting away from deficit limit becomes hard goal for Europeans
|
|
European regulators urged Italian Prime Minister Silvio Berlusconi to take appropriate measures to prevent the deficit from overstepping legal limits.
Despite last month’s European Union decision to moderate the budget-deficit rules for the 12 euro-using countries, Monetary Commissioner Joaquin Almunia declared his intention to ask the 25-nation EU to order Italy to reduce its borrowing.
Almunia said that budgets in Germany, France, Greece and Portugal would trigger concern as well, but noted that the necessity of stringent measures in those countries is less urgent.
Almunia projected that Italy, which was right at the limit line in 2004, would fall into deficit of 3.6% in 2005 and 4.6 % in 2006 if new savings were not made by Berlusconi. His promise of 12 billion euros in personal and business tax cuts next year hints at the potential possibility of such savings.
However, the commission, the EU’s Brussels-based economic watchdog, put Italian growth at 1.2%, undermining the government’s 2.1 % prediction.
In reaction to the regional critics, Berlusconi said last week he may agree bringing national elections in October, seven months earlier than arranged by the schedule.
Greece, which was the last country to adopt the euro, is taking enough efforts to bring its deficit below 3%.
``The Greek government is in the process of taking very serious efforts to reduce the budget deficit,’’ said Juncker, chairman of last night’s meeting of euro ministers and today’s meeting of all 25 EU ministers. ``We judged that there are no new and supplementary measures necessary.’’
EU officials will examine Portugal’s deficit, expected at 4.9 % in 2005, as soon as the new government of Prime Minister Jose Socrates reveals its budget plans, Almunia said.
|
|
All world news
|
|
|
|
|
|
|
|
|
|
 KEYWORD SEARCH |
|
|
|
|
|
SUBSCRIPTION |
|
|
|
|
|