EU says euro zone fiscal stance improves

Record ID: 876618

  • Title: EU says euro zone fiscal stance improves
  • Date: 22nd May 2017
  • Summary: BRUSSELS, BELGIUM (RECENT) (REUTERS) EXTERIOR OF EU COMMISSION BUILDING ENTRANCE TO EU COMMISSION BUILDING
  • Embargoed: 5th June 2017 12:43
  • Keywords: Italy Budget Spain Commission Eu Moscovici France Dombrovskis euro zone
  • Location: BRUSSELS, BELGIUM
  • City: BRUSSELS, BELGIUM
  • Country: Belgium
  • Topics: European Union,Government/Politics
  • Reuters ID: LVA0016HX7PZB
  • Aspect Ratio: 16:9
  • Story Text: The economic situation in the European Union is improving, European Commission Vice-President Valdis Dombrovskis told a news conference on Monday (May 22), adding that euro zone countries had improved their fiscal stance, a sign of growing financial stability.
    Every spring the EU executive publishes an assessment of the fiscal positions of each of the 28 EU member states, along with its recommendations for economic reforms and for disciplinary measures against those with unbalanced budgets.
    The 19-country euro zone has lowered its total budget deficit to 1.5 percent of the bloc's gross domestic product (GDP) in 2016. The gap is to fall further this year and next, well below the 3 percent of GDP required by EU rules.
    The EU as a whole had an aggregate deficit of 1.7 percent last year, which is also set to decrease.
    Italy, which after Greece has the bloc's largest public debt, faces "urgent challenges", the Commission said, though it sees additional budget measures adopted by Rome in April as sufficient to keep Italy's accounts in line with EU rules for this year.
    European Economic and Financial Affairs Commissioner Pierre Moscovici told a news conference the EU executive would keep monitoring the situation in the peninsula.
    France, along with Spain, Greece, Britain, will continue to face disciplinary procedures for its excessive budget deficit.
    Measures against France, the euro zone's second largest economy, have been in place since 2009. It has until the end of this year to bring the budget shortfall below the EU ceiling of 3 percent of GDP.
    The commission's recommendations must be approved by EU finance ministers to come into force.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2017. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
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