The European Union (EU) has officially opened the excessive deficit procedure against Ireland, Greece, Spain and France since their budget deficits shot up beyond the EU's limit amid the financial crisis.
The decisions, which were taken by EU foreign ministers in Luxembourg on Monday, required the four countries, as well as Britain, which had been under the excessive deficit procedure, to take corrective actions to rein in their deficits by Oct. 27, 2009.
Under the EU's Stability and Growth Pact, all member states have to keep their budget deficits below 3 percent of their gross domestic product (GDP).
"In all five member states, that threshold is now exceeded and an excessive deficit procedure is opened," the EU said.
The EU has set a deadline for Ireland to bring its deficit below the 3 percent threshold by 2013. It called on Greece to do so by 2010, Spain by 2012, France by 2012 and Britain by the 2013-14 financial year.
EU countries have seen their fiscal positions deteriorate significantly in recent months as an economic recession reduced government revenues while financial bailouts and economic stimulus cost heavily.
(Xinhua News Agency April 28, 2009)
