MNI BRIEF: EC Considers Adding Finland To Excess Deficit List

The European Commission is considering adding Finland to the list of nine countries already in an excessive deficit procedure, it said on Tuesday.

Finland's 2024 budget deficit breached the 3% of GDP limit laid down by the bloc's rules and is expected to do so again in 2025. The EC also decided, following a review, that Germany's planned deficit of over 3% of GDP this year does not break the rules because the excess is explained by the increase in its defence spending.  

The EC also warned the Netherlands that its 2026 spending plan is “materially non-compliant" with EU rules while Spain's spending path puts it in danger of exceeding the maximum limit set out by the Commission. The two countries, along with Croatia, Lithuania and Malta will need to take steps to reduce future spending. (See MNI: EU Fiscal Consolidation Getting Harder - Commission)