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Eurogroup requires Spain to revise 2016 budget

Staff writer ▼ | November 25, 2015
Eurozone finance ministers required Spain to submit an updated Draft Budgetary Plan as the assessment showed the country's budget is at risk of not complying with the Eurozone requirements.
Requirements   19 Eurozone ministers gathered in Brussels
The finance ministers of 19 Eurozone countries gathered in Brussels for a monthly meeting, to discuss the euro area member states' draft budgetary plans for 2016.

These plans have to be submitted each year by 15 October, and the European Commission assesses whether they comply with the rules of the Stability and Growth Pact (SGP).

The Eurogroup said that no draft budgetary plan was found in serious non-compliance with the obligations of the SGP. However, four countries - Austria, Italy, Lithuania and Spain - have budgetary plans that are at risk of non-compliance with the rules.

The finance ministers argued that Spain's Draft Budgetary Plan has a risk of excessive government deficits.

The finance ministers have recommended Spain to correct the excessive deficit for 2016, to bring the headline government deficit below the 3 percent of GDP, which is the reference value for the Eurozone countries.

According to latest forecast by the European Commission, Spain's headline deficit will be 3.6 Therefore, the Eurogroup said additional measures would be needed to ensure that the requirements are met.