EU warns Spain, Italy and Finland over budget plans

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EU warns Spain, Italy and Finland over budget plans

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The European Commission has warned that a number of eurozone states risk breaking EU rules over draft budget plans.

It is the first time the Commission has reviewed the budget assumptions of eurozone states and it has the right to request a revised budget plan from a eurozone member if it breaks debt and deficIt rules.

Olli Rehn is the European Commissioner for Economic Affaires: “At the height of the crisis two years ago in 2011. There were only three member states out of the Excessive Deficit Procedure. Currently there are 12 member states out of the EDP and I am sure that there will be more out of the EDP next spring. In others we see risks that the implementation of the plan could lead to non-compliance down the line,” he said.

The main culprits Spain, Italy and Finland have been told that their fiscal plans may fall well short of European expectations. However the number of those states given a gold star by the Commission number two, Germany and Estonia, the rest need some form of correction. Ireland, Greece, Portugal and Cyprus are excluded as they under troika control.

Those nations that fall short will have to revise their tax and spending plans before re-submitting them for scrutiny.