The European Union will punish the negligent spenders.
EU has decided to punish the big spenders. A procedure unleashed by the European commission against six countries because of the high deficit, will follow.
France, Spain, Greece, Ireland, Latvia and Malta will have to fill the holes in their budgets, so they reach 3%, which is the limit of allowed GDP deficit.
Regardless of the world experts' recommendations for undertaking expansive fiscal politics to lower the effects of the crisis, some of the countries have magnified the spending.
Spain has projected a budget deficit of 5,8 %, France 4,4%, Ireland 5,5,% and Greece 3,7%. For the countries that won't tighten the spending the Union will undertake sanctions.
If a comparison is made with the situation in Macedonia, the results show that this country is not among those that spend more than they earn.
For 2009 the Macedonian government plans to spend 2,7 billion euro while the projected incomes are 2,5 billion euro. The budget deficit is 2,8% from the GDP.
(MKFUNDS)