Finland, traditionally one of the most fiscally disciplined members of the European Union, received a warning from Brussels.
The European Commission, the Union’s executive arm, last week tasked Helsinki with preparing a plan to reduce the budget deficit, which has exceeded the EU’s allowed limit of 3 percent of gross domestic product (GDP).
The commission said it expects Finland’s deficit to reach 4.5 percent of GDP in 2025, while public debt could reach 90 percent of GDP next year – almost twice as much as in 2019.
This Nordic country, whose annual economy is worth 300 billion euros, has now been formally placed under the EU’s Excessive Deficit Procedure.
This could lead to financial sanctions, including high fines, suspension of EU funds and stricter supervision of fiscal policy by Brussels, “SeeBiz” reports.
(Vijesti.ba)
