EU Initiates Disciplinary Measures
(MENAFN) On Tuesday, the European Council declared that it had initiated a procedure to enforce fiscal responsibility on Austria due to its "excessive" shortfall in the national budget.
This initiative, referred to as the excessive deficit procedure (EDP), aims to make sure that countries within the union uphold or re-establish financial discipline in their state budgets, according to a formal release from the European Council.
The announcement clarified that the process was set in motion following Austria's budget shortfall of 4.7 percent for the year 2024.
"The Council also approved a recommendation to Austria outlining the net expenditure path and timeline that should be followed to put an end to its excessive deficit by 2028," the statement noted.
It further indicated that Austria must detail the steps it intends to implement in order to effectively bring down its deficit by October 15.
"Austria should ensure that its nominal growth rate of net expenditure does not exceed 2.6% in 2025, 2.2% in 2026, 2.2% in 2027 and 2.0% in 2028," the statement continued.
Austria recorded a 4.7 percent budget gap last year.
According to projections from the EU Commission, the deficit is anticipated to decline slightly to 4.4 percent of the country’s gross domestic product (GDP) in 2025 and 4.2 percent the following year.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
