The European Commission will tomorrow warn several EU member states, including Malta, France, Italy and Belgium, that their 2015 risk breaching EU rules, according to international news agency Reuters. The commission will take a decision in March, it is being reported.  

Reuters says it had seen draft documents showing that a number of countries, which also include Spain, Portugal and Austria, are "at risk of busting budget limits."

The European Commission is expected to uge all of the mentioned countries not to break their budgets, but picks out Rome, Paris and Brussels for a second review of compliance in March.

"This gives them three more time to adjust policy before the EU executive must decide whether to fine France for missing consolidation targets or put Italy and Belgium under a disciplinary procedure because of their debt." The wording for Italy and Belgium is the same.

The Commission will publish the assessments of all of the draft budgets of the 18 euro zone countries, except Greece and Cyprus which remain under bailout programs, tomorrow.

The EU Commission has been granted power to carry out these assessments in the wake of the sovereign debt crisis, to make sure governments did not ignore EU rules that set limits on the size of public debt and deficit.

In a statement, the Ministry for Finance said it noted the report by Reuters in the media in connection with the upcoming Commission Opinion on the Draft Budgetary Plan for Malta.

More specifically, it noted the report that Malta is not being reported as one of the countries which are likely to be submitted to a second review of compliance. This is unlike other Member States, which will reportedly be subjected to a second review of compliance in the coming March, with the risk of facing a disciplinary program.

 

The Government is confident, that following the measures announced last week in the Budget for 2015, the risks highlighted by the Commission are being duly addressed, and is confident that there will be no need for further action.