The European Commission has rejected Greece’s draft budget due to concerns the proposed spending may have on the debt-laden nation. It is the first time the EU has tried to force a member state to change its budget, and fines could be imposed if the request is ignored. Greece’s debt, sitting at 131% of national output, is the second-highest in Europe, behind Italy. Greece, which wants to increase spending to “end poverty” and deliver on election promises, claimed the budget deficit would not go above 2.4% of GDP. The country’s populist leaders have pledged to pursue their proposed budget in spite of the EU’s objections.
The European Commission has rejected Italy’s draft budget due to concerns the proposed spending may have on the debt-laden nation. It is the first time the EU has tried to force a member state to change its budget, and fines could be imposed if the request is ignored. Italy’s debt, sitting at 131% of national output, is the second-highest in Europe, behind Greece. Italy, which wants to increase spending to “end poverty” and deliver on election promises, claimed the budget deficit would not go above 2.4% of GDP. The country’s populist leaders have pledged to pursue their proposed budget in spite of the EU’s objections.