Rising public deficits and debt levels in the Eurozone pose “sustainability risks” in a number of countries, the European Commission has warned.
In its latest assessment of Eurozone countries’ compliance with EU fiscal rules — which aim to keep public deficits within 3 per cent of annual GDP — the commission found that owing to “immense demands on public finances” a number of countries were “having [fiscal] sustainability risks,” EU economy commissioner Valdis Dombrovskis said.
“After declining substantially in previous years, aggregate euro area deficit levels and debt levels have started to edge up again, so we need to remain vigilant,” he added in an interview with the Financial Times.
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