Eastern members face EU fiscal deficit procedure

Significance Eleven members are expected to be found in breach of the EU’s rules governing fiscal deficits and public debt, including three or four of the Visegrad Four (V4) states. These members risk being put under the excessive deficit procedure (EDP). Impacts The consistent application of the EU’s fiscal deficit rules could bolster confidence in the euro. Given public sentiment, budgetary cuts are more likely to fall on decarbonisation than defence. The V4 countries could be excluded from the European Central Bank’s new bond-buying programme if they do not comply with EDP measures.