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On July 26, the European Council initiated the Excessive Deficit Procedure against seven EU countries (Belgium, Hungary, Italy, Malta, Poland, Slovakia, France) and extended it to Romania. This was reported on the European Council website.
The EU Treaty stipulates that member states must maintain budget discipline, with deficits not exceeding 3% of GDP and public debt not exceeding 60% of GDP. If a block participant exceeds the deficit target, a special procedure related to it will be initiated, providing for enhanced monitoring and providing recommendations for reducing costs and increasing revenues.
In 2023, eight countries will have deficits above the treaty baseline: Italy (-7.4%), Hungary (-6.7%), Romania (-6.6%), France (-5.5%), Poland (-5.1%), Malta (-4.9%), Slovakia (-4.9%), and Belgium (-4.4%).
Since 2019, Romania has been in excessive deficit procedure.
From 2020 to 2023, the excess deficit rules do not apply due to the COVID-19 pandemic.
By the end of this year, the European Commission must present proposals for eliminating excessive national deficits, with specific quantitative and time parameters.
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