The European Commission took the first move against Lithuania, Malta, Poland and Romania on Wednesday over excessive national budget deficits brought on by the economic crisis. The EU recently launched deficit procedures against France, Greece, Ireland and Spain.
Under EU rules, the bloc's member countries are supposed to keep their budget shortfalls to less than three percent of gross domestic product (GDP) although they are allowed some leeway when the economy sours. However many EU countries are expected to breach the limit this year as the downturn bites.
Facing one of the worst recessions of the post-war period, EU governments are plowing billions into their economies in response to slumping economic activity just as tax income falls, causing gaps in their budgets to blow out. The four EU nations in the spotlight Wednesday had already breached the three-percent limit last year with Lithuania posting a deficit of 3.2 percent, Poland 3.9 percent, Malta 4.7 percent and Romania 5.4 percent.
All four are relatively new members having joined in or after 2004 when the EU expanded into former Soviet central and eastern Europe. The official commission legal action puts pressure on the offending nations to rein in their excessive deficits, though no strict deadline was imposed.
In its last move, the commission called on Ireland to respect a 2013 deadline for bringing its deficit to less than three percent of GDP, France by 2012, Greece by 2010, Spain by 2012 and Britain by March 2014. Britain was already subject to disciplinary action over its deficit.
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