Communication on the 2018 Draft Budgetary Plans: Overall Assessment

Further information:

+ Launch of the 2018 European Semester, November 2017

The European Commission published on 22 November 2017 its assessment of whether the 2018 Draft Budgetary Plans (DBP) of Eurozone Member States complied with the provisions of the Stability and Growth Pact (SGP).

The Eurogroup issued a Statement on the Draft Budgetary Plans for 2018 on 5 December 2017.

The European Commission adopted 18 Opinions for all Euro area Member States except Greece. No DBP for 2018 was found in particularly serious non-compliance with the requirements of the Stability and Growth Pact (SGP). In several cases, however, the European Commission found that the planned fiscal adjustment falls short, or is at risk of doing so, of what is required by the SGP.

Regarding the sixteen countries in the preventive arm of the Stability and Growth Pact: for six countries (Germany, Lithuania, Latvia, Luxembourg, Finland and the Netherlands), the DBPs are found to be compliant with the requirements for 2018 under the SGP. For five countries (Estonia, Ireland, Cyprus, Malta, and Slovakia), the DBPs are found to be broadly compliant with the requirements for 2018 under the SGP. For five countries (Belgium, Italy, Austria, Portugal, and Slovenia), the DBPs pose a risk of non-compliance with the requirements for 2018 under the SGP. In the case of Italy, the persisting high government debt is a reason of concern.

Regarding the two countries remaining in the corrective arm of the Stability and Growth Pact (i.e. subject to the Excessive Deficit Procedure): for France, the DBP is found to be at risk of a non-compliance with the requirements for 2018 under the SGP. For Spain, the DBP is found to be broadly compliant with the requirements for 2018 under the SGP.

• Primary Source

Eurogroup: Eurogroup statement on the Draft Budgetary Plans for 2018 http://www.consilium.europa.eu/en/press/press-releases/2017/12/04/eurogroup-statement-on-the-draft-budgetary-plans-for-2018/

EPRS: Briefing: Key features of 2018 Draft Budgetary Plans http://www.europeansources.info/record/key-features-of-2018-draft-budgetary-plans/

Politico, 22.11.17: Commission warns Italy, France on their 2018 budgets https://www.politico.eu/article/commission-warns-italy-france-on-their-2018-budgets/

Reuters, 22.11.17: Six euro zone states risk EU budget rule breach in 2018 https://www.reuters.com/article/idUSKBN1DM19G

The Local.it, 22.11.17: Italian government debt 'reason for concern': EU https://www.thelocal.it/20171122/italy-government-debt-reason-for-concern-eu

ERR News, 22.11.17: European Commission supports Estonia's 2018 budget plan http://news.err.ee/644258/european-commission-supports-estonia-s-2018-budget-plan

EUObserver, 22.11.17: Commission warns Italy over high debt level https://euobserver.com/economic/139986

Eurogroup: Eurogroup statement on the updated draft budgetary plans of Austria for 2018 http://www.consilium.europa.eu/en/press/press-releases/2018/04/17/eurogroup-statement-on-the-updated-draft-budgetary-plans-of-austria-for-2018/

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