Croatia: EU Introduces Excessive Deficit Procedure

Politics ♦ Published: December 11, 2013; 06:51 ♦ (Vindobona)

In the last years, Croatia´s fiscal situation has deteriorated considerably. Not only the budget deficit remains above 3.0% of GDP, but also the public debt quota has climbed above 60% of GDP.

Croatia: EU Introduces Excessive Deficit Procedure / Picture: © Vindobona.org

Last year, Croatia´s budget shortfall reached 5.0% of GDP. Moreover, the public debt quota came at 55.5% at the end of 2012. This is still below the 60% limit, but the threshold will be exceeded already in 2013. As a result, the European Commission has introduced an excessive deficit procedure against the new EU member. In the last months, Croatia´s government had to revise its fiscal…