Press Release: Commission initiates Excessive Deficit Procedure for the United Kingdom

The European Commission adopted a report under Article 104(3) of the EU Treaty following the UK authorities' notification, in March 2008, of a planned deficit of 3.2% of GDP in financial year 2008/09, i.e. above the 3% of GDP Treaty reference value. While the report accepted that the planned deficit remains close to the reference value, it concluded that it cannot be qualified as exceptional within the meaning of the Treaty and the Stability and Growth Pact; nor can it be considered temporary.