EU Initiates Excessive Deficit Procedure against Slovakia

Brussels, July 26 (TASR) - The Council of the EU decided to initiate an excessive deficit procedure against Slovakia and six other member states during its meeting on Friday, following thus recommendations previously issued by the European Commission (EC). The EU Council adopted decisions establishing the existence of excessive deficits for Belgium, France, Italy, Hungary, Malta, Poland and Slovakia. In addition, Romania had not yet taken effective action to correct its deficit since 2020. The countries involved will have between four and seven years to carry out corrective actions. When a member country’s deficit exceeds 3 percent of its gross domestic product (GDP) and its debt surpasses 60 percent of its GDP, an excessive deficit procedure is launched. All member states must adhere to these treaty reference values. The excessive deficit procedure is designed to ensure that all member states adhere to disciplined budgeting and avoid running excessive deficits. The ultimate goal is to maintain low debt or to reduce it to sustainable levels. According to data confirmed by Eurostat in April, the general government deficit in Slovakia stood at 4.9 percent of GDP in 2023 and general government debt amounted to 56 percent of GDP, stated the EC in its report on Slovakia. According to the EC, the fact that the deficit got above 3 percent wasn't caused by any exceptional event or a sharp decline of the economy in the sense of the Stability and Growth Pact. ko