Eight Nations risk renunciation of EU membership

by Mike Elliot | Monday, Nov 21, 2016 | 271 views
ADS2

The European Commission issued their warning to eight European nations regarding EU rules that the particular countries in concern risk breaking. The countries including Italy were warned due to having excessive shortfalls in their budgets.
European Union pacts, member countries are prohibited from running annual deficits that are higher than 3 percent of their gross domestic product (GDP). The commission, which can also oversee the draft budgets of the Eurozone countries stated that the eight nations are risking “insubordination” in 2017.

Italy’s validation point

Other nations listed among the eight also include Portugal and Spain which have a close call already. However, Pierre Moscovici, the EU Economic Affairs Commissioner came out in defense of Italy, owing the deficits to the additional expenses used in management of migration crisis and a series of earthquakes the country faced.
“in the case of Italy, a significant part of the deviations is rather because of the expenses related to seismic activities the country faced, which have been very intense and dramatic this year,” Moscovici said. “The EU will have to consider that”, he added.

The case for other nations

In August, Portugal and Spain escaped hefty fines over budget deficits after they were issued more time by EU to comply with the union’s rules. In 2015, Spain had a deficit of 5.1 percent of its GDP. On the other hand, Portugal’s was at 4.4 percent.
Other countries that were caught in the mix included Cyprus, Belgium, Lithuania, Slovenia and Finland. Although all nations in EU are required to comply with the low of less than 3 percent deficit in GDP, the countries that can be fined are only those that use the euro currency, which are 19.

EU membership.EU membership.EU membership.EU membership.EU membership.EU membership.EU membership.EU membership.

Other countries that were caught in the mix included Cyprus, Belgium, Lithuania, Slovenia and Finland. Although all nations in EU are required to comply with the low of less than 3 percent deficit in GDP, the countries that can be fined are only those that use the euro currency, which are 19.

ADS2
Like it? Share it!

Leave A Response