Luxembourg - European Union foreign ministers Monday told
France and three other eurozone members they have six months to
explain how they intend to put their public finances in order.
Britain, which does not use the common European currency, was also
given until October 27 to 'take corrective action' aimed at reducing
its budget deficit.
Britain, France, Spain, Greece and Ireland have all seen their
budget deficits exceed the 3 per cent of gross domestic product (GDP)
limit imposed on EU nations, in no small part as a result of the
financial crisis and the subsequent global recession.
At their meeting in Luxembourg, EU foreign ministers formally
endorsed a series of recommendations put forward last month by the
European Commission, which acts as the guardian of EU rules.
France and Spain, whose budget deficits could reach as much as 6
per cent this year, were both told by the commission that they needed
to return to financial legality by 2012.
Ireland and Britain, two of the EU countries worst affected by the
global economic crisis, were given until 2013 and the 2013-14
financial year respectively.
But Greece, which broke the budget rules even before the recession
kicked in, in 2007, was told to reduce its deficit to within 3 per
cent as soon as next year.
EU member states are normally urged to correct their excessive
deficits as soon as possible.
The extended deadlines approved by the commission last month thus
acknowledge that the bloc's Stability and Growth Pact should be
applied flexibly during times of economic crisis.
USA
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