Brown faces grilling over budget deficit breach
Gordon Brown is due to face a grilling by the European Commission for breaching budget deficit limits.
The chancellor could be dragged over the coals for breeching rules governing the single currency, despite the UK remaining outside the eurozone.
For a second time, the EU commission is set to warn Mr Brown that the budget deficit will exceed the three per cent ceiling agreed under the Stability and Growth Pact.
Germany, France, Spain, and others are also due for a grilling for “excessive deficit procedure”.
The Treasury has made plain it wants EU rules on public finances to reflect how markets work during different economic cycles.
Others in Europe agree that the one-size-fits-all economy strategy is failing member states across the board.
Joaquin Almunia, EU economic and monetary affairs commissioner, is set to tell the commission today that the UK’s budget deficit could hit 3.1 per cent of GDP during 2004-2005 according to estimates.
The Treasury is forecasted to borrow £41 billion this year, £9 billion more than he forecast in the Budget, according to some analysts.
The Stability and Growth pact was adopted in 1997, designed to enforce budgetary discipline among the countries intending to enter the single European currency.
