IOL: EU gives UK six months to show how it can cut budget deficit

IOL

EU gives UK six months to show how it can cut budget deficit

European Union finance ministers today ordered Britain to rein in public spending and bring its budget deficit under the EU limit by the end of March 2007. Britain has six months to explain how it will cut its deficit to below 3% of gross domestic product. Ministers backed the European Commission’s view that Britain’s deficit will be around 3.1 percent in the fiscal year 2006-07, “despite fiscal measures announced in December. In such circumstances, the excess can no longer be considered as exceptional or temporary,” they said in a statement.