Signs of breaking the deficit rules after the defense package – but several countries do not need to

Brussels – Austria and Romania find themselves in the corner of shame in the EU Commission’s annual reports on the state of the economy.

In the spring package presented on Wednesday, it is proposed that a so-called excessive deficit procedure (EDP) be initiated for Austria to get the country to address its budget deficit. For Romania, which is already under scrutiny, there is a warning of an “obvious risk” that it will not be able to resolve its deficit by the year 2030.

At the same time, the EU Commission approves the applications from 16 EU countries to break normal deficit rules in order to invest extra in their defense. The possibility of breaking the rules is part of the EU Commission’s large defense package from earlier this spring. Sweden is among the 11 countries that have so far chosen not to apply for an exemption from the rules.

“The priorities in this year’s spring package can be summarized in two words: competitiveness and security. This brings us back to the fundamentals of the EU project: peace and prosperity,” writes Economic Commissioner Valdis Dombrovskis in a press release.

(June 4)