Seven EU members to miss deficit targets

The European Commission shortly will announce that seven EU countries are at risk of failing to hit their deficit targets next year.

Portugal is on the list, according to Reuters which had access to a draft. Italy and Spain also are included in the latest report on the budgetary risks of eurozone countries.

Brussels also will announce that Austria, France and Belgium are at risk of failing which along with Malta make up the seven.

Portuguese government estimates from the Passos Coelho administration point to a 2014 deficit of 4% of GDP, falling to 2.7% next year, higher than the agreed figure of 2.5% as agreed with Brussels.

France and Italy have already warned of the possibility of not meeting their original goals which has generated some tension with Brussels.

In early October, the French executive revised its targets, indicating that the deficit was to be 4.4% this year, 4.3% in 2015, 3.8% in 2016 and finally to 2.8% in 2017, only then falling below the 3% limit.

However, on 27 October, the French government pledged to change these goals and to implement measures to reduce the deficit in 2015 by €3.6 billion to help things along although few think France has the ability to make the necessary adjustments.

Italy, with a shrug, already has set a deficit target 2.9% of GDP for next year, a value that exceeds the 2.1% initially agreed with the European Commission.

Spain remains in an appalling financial mess and must bring this year’s deficit to 5.8% of GDP, next year to 4.2% and in 2016 to 2.8%.

The full report will be out on Friday.

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