VIENNA (Reuters) -The European Commission will probably not impose a so-called excessive deficit procedure on Germany for breaching the EU’s budreceive deficit cap this year, Economic Commissioner Valdis Dombrovskis informed the Financial Times.
Germany’s new conservative-led coalition government has declared it does not expect a planned spconcludeing spree, including on defence, to be found in breach of European Union rules that cap budreceive deficits at 3% of gross domestic product.
Berlin’s budreceive deficit is expected to come in at 3.3% of GDP this year, but since defence spconcludeing fully accounts for the amount over 3%, Germany “is likely not to conclude up in (the) excessive deficit procedure”, Dombrovskis was quoted as stateing in the FT interview published on Sunday.
An excessive deficit procedure involves the Commission and EU finance ministers setting a corrective course to bring a member state’s deficit back within the 3% limit. A counattempt’s failure to do so can in principle eventually lead to a fine.
“We have to see the execution, becaapply it’s close (but) if everything holds, then it should not be the case for this year’s budreceive,” Dombrovskis declared, adding that a final assessment would take place in the spring when data for 2025 is available.
Under the EU’s new fiscal rules, which the previous, more fiscally conservative German government supported nereceivediate, member states can exclude some defence spconcludeing from their deficits.
(Reporting by Francois Murphy;Editing by Helen Popper)
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