The European Commission recently announced that the 2009 budget deficit exceeding the Government of Germany, Italy, Netherlands, Belgium, Austria, Czech Republic, Portugal, Slovakia and Slovenia nine Member States start deficit exceeding the program. Prior to this, EU has on France and the other nine Member States had deficits exceeding the program started. EU stated that although the current financial crisis is a special case, but the deficit exceeding the situation are not in keeping with the "temporary" or "small" requirements that must be corrected according to the economic situation of grace period. Since the outbreak of the international financial crisis, the EU stimulate the economy and to control the deficit between face dilemmas, the majority of Member States ' budget deficit well beyond EU stability and Growth Pact requirement of 3% ceiling. To this end, the EU Member States over the last few days many have taken various measures to try to control the deficit level.
Belgium decided to cut defense spending
Belgium, the Federal Government announced on 13 October, due to financial constraints, the Belgium Ministry of defence plan next year will be reduced defence spending 1 billion euros, will reduce the number of troops nearly 20%. This is Belgium government revenue, reduce the budget deficit is one of the initiatives.
It is predicted that Belgium 2009 budget deficit of around 250 million euros, representing a 7% of GDP. The financial crisis led to Belgium's economic crisis, this year's economic growth is expected to be negative 3.1% financial income decreased significantly. At the same time, the Government has adopted an economic stimulus plan, causing financial "hole".
In the face of difficulties, the Belgium Government seems not to worry, for two reasons: one is the experienced greater deficit risks of Belgium doesn't seem to care about the current deficit situation. In 1982, Belgium had reached the fiscal deficit accounted for 13% of its GDP, Government by making Belgium franc 8.5%, freezing wage growth, gradually restored the balance. Euro enabled, because the euro depreciated or not is decided by the Government of Belgium, the devaluation of the tool is unable to continue to use. The second is Belgium's savings than loans, which means that Belgium Government can borrow from the nation where the necessary funding.
Belgium Government believes that seek quick balancing is unwise: neither increase revenue or reduce consumption; neither can change Belgium's social security mode, you cannot stop the public investment. Therefore, the budget deficit problems can only be used with the gradual economic recovery is expected to be resolved by 2015 in order to compensate for deficits.
United Kingdom to tide over the sale of government assets
United Kingdom current deficit as high as $ 2200 million pounds (1 pound approximately 1.63 USD), GDP of 12%, significantly exceeded the United Kingdom the traditional cordon. The pressure to reduce the budget deficit, the United Kingdom Prime Minister Brown recently and then the new strokes, announced the sale of two years, the total value of 160 million pounds of government assets. Where central Government will sell the Channel Tunnel rail link, across the River Thames in Dartford bridge, student loan institutions, to funding 30 billion pounds. Local Government will sell around the parks and leisure centres to 130 million financing.
United Kingdom Government this is last resort. At present, although the crisis eased, but the unemployment rate remains high, personal consumption, credit, companies can't expand investment, the factors that hinder the development of economic health. Official estimates in accordance with the United Kingdom, the United Kingdom economy can only be the end of this year, but recovery recovery would be "slow and lengthy process".
Against this background, the tremendous budget deficit into a United Kingdom Government and the main battlefield of wrestling. The opposition conservative party has repeatedly accused Brown led the Labour Government to make the whole United Kingdom "to fail." See next June before a general election, on the one hand, to ensure that Brown's economic recovery, on the other hand, it cannot be readily cut expenses. Sale of government assets is a useful tactic, but remains a bucket.
Spain intends to live a frugal
Due to the financial crisis and substantial increase in public expenditures, Spain government financial imbalances. According to reports, Spain this year the first 8 months of the fiscal deficit exceeding 603 million euros, representing 5.3% of its GDP. Even predicted that, by the end of 2009, Spain's deficit will rise to 10% of its GDP. The EU has to include the "Spain" high risk.
To control rising budget deficits, the Government of Spain has taken measures to increase revenues, with the 2010 budget will determine the size of the deficit to GDP 5.4%. Spain Government considers that 2010 will be the most economical one.
Income, mainly tax increases. Spain Government's 2010 budget, in addition to the bread, eggs and other necessities of VAT remains unchanged, from July 2010 will be the main rate of VAT from 16% to 18%, other commodity sales tax by 7% to 8%. Introduction to savings income and progressive taxation abolished the existing 400 euros of personal income tax credit. The increase in tax measures will enable the Government revenues 109 billion euros, or about 1% of GDP.
Savings, is to reduce public expenditures. Spain 2010 public expenditure budget 1852.49 million euros, up by 3.9% in 2009, including industry and Trade Ministry of tourism, the Ministry of Foreign Affairs, defence, government sector budgets are reduced.
In order to achieve savings goals, Spain Royal family and Government officials take the lead in freeze wages or wage. As far as Spain, the Royal Ministry of finance disclosure 2010 budget and this year's fair, this is the introduction of parliamentary democracy Spain 30 years, the Royal family for the first time, not to increase the annual budget. Prime Minister Zapatero is active freeze their wages, other government officials have to follow. The largest opposition people's party leader Rajoy also said it would reduce their own salaries.
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