EU countries with a budget deficit above 3% of GDP will have only very limited leeway to escape facing an Excessive Deficit Procedure, EU Commission Executive Vice President Valdis Dombrovskis warned Tuesday, noting that other relevant factors could be taken into account but only where the excess of any deficit is “close to 3% and temporary”.

Reports have suggested that up to 11 countries could have EDPs launched against them when the Commission announces its Spring Package on June 19. (see MNI: EDPs Give EU Early Test Of New Fiscal Rules-Officials)

A number of frontline states are arguing that the urgent need to raise defence spending should be a mitigating factor in the Commission’s excessive deficit assessment.