EU mulls fines on big deficits

first_imgWednesday 29 September 2010 11:48 pm EU mulls fines on big deficits THE EUROPEAN Commission proposed tougher sanctions on Eurozone countries that breach EU budget rules yesterday, as trade unions staged strikes and protests against austerity measures.The EU executive outlined plans to prevent a repeat of Greece’s debt crisis by making chronic deficit offenders deposit 0.2 per cent of their gross domestic product with Brussels.The interest-bearing deposit would be converted into a fine unless the country brought its budget gap below the EU limit of three per cent, while repeat offenders will incur annual fines of 0.1 per cent of GDP. “[The] changes will give teeth to enforcement mechanism and limit discretion in the application of sanctions,” the Commission said.The proposals require approval by EU heads of government and the European parliament.Some economists argue that stiffer penalties for deficit sinners will not solve the EU’s problems since harsher austerity may choke economic growth in those countries.“Unless there is a rethink, the Eurozone risks permanent crisis, with chronically weak economic growth across the region as a whole,” said Simon Tilford, chief economist of the Centre for European Reform. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople Today whatsapp Share More From Our Partners 980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comcenter_img Show Comments ▼ whatsapp Tags: NULL KCS-content last_img

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