Editor in Chief: Moh. Reza Huwaida Saturday, December 16th, 2017

EU Lifts Britain out of Deficit Sin Bin

EU Lifts Britain out of Deficit Sin Bin

BRUSSELS - The EU said Wednesday it would end its special budget supervision for Britain after almost a decade, saying London had reduced its excessive deficit enough to fall within the bloc’s public spending rules.
The news from Brussels will come as a boost to finance minister Philip Hammond as he prepares to unveil the government’s annual budget against the backdrop of looming Brexit and sluggish growth.
The European Commission ended its monitoring regime for non-euro Britain, first imposed in 2008, saying London had reduced its deficit -- the shortfall between revenue and spending -- in a “timely and durable” way.
“On what happens to be the day of Philip Hammond’s budget, we have a good news for him -- we are closing the excessive deficit procedure for the UK,” EU economic affairs commissioner Pierre Moscovici said.
“The country has durably reduced its deficit from a peak of 10 percent of GDP in 2009-10 to 2.3 percent in 2016-17, in line with the council recommendation of 2015.”
European Union rules adopted since the 2008 global financial crisis give Brussels increased oversight powers to ensure member states meet the targets and so avoid a repeat of the crash which brought the economy to its knees. (AFP)