EU Announces Deadlines for Member States to Reign in Deficits, Scolds UK

From Forextv.com

The European Union has set deadlines for member nations to bring their deficits down in the next few years.According to the Stability and Growth Pact adopted in 1997, all member nations must have an annual budget deficit of no higher than 3% of GDP, with some flexibility provided in times of economic slump.

The EU has given Greece until 2010 to bring its deficit back under the agreed-upon limit, and France and Spain until 2012.

The Commission said the UK's budget situation has "worsened substantially" and gave the UK until 2013/14 to get its deficit under control. The statement said the UK has not taken effective action to reduce its deficit.

Ireland was given a deadline of 2013. The Commission said Ireland needs a consolidation effort amid a weak economic situation.

Each nation was given six months to provide an outline of steps it will take to reign in deficits.