The European Commission is warning the Spanish and Italian governments that their draft budgets for 2014 do not comply with new debt and deficit rules. The Commission also said that France and the Netherlands barely qualified for the new standards.
According to the European Union’s charter, countries that do not comply will likely have to revise their tax and spending plans before they can be submitted to national parliaments. The warning marks the first time the EC has taken this step.
Eurozone members states are required to cut deficits until they reach a balanced budget. They also have to reduce levels of public debt. The Commission usually gives countries flexibility if their deficit is below the EU ceiling of 3% of the nation’s gross domestic product.
The Commission said that France, while just below the 3% threshold, was making only “limited progress” in reforms.
The Eurozone economy grew by .1% from July to September in data released Thursday, down from .3% growth in the previous quarter.
The Eurozone debt crisis, which has stabilized over the last year, is in danger of seriously exploding as the government of Portugal is threatening to collapse.
Portugal’s Prime Minister made a national address Tuesday night saying he refused to accept the resignation of the country’s foreign minister and that he would try to go on governing. Continue reading →
The city of Detroit, Michigan is about to default on almost $2.5 billion in debt and is asking the city’s creditors to take ten cents for every dollar they’re owed by the city. Continue reading →
Jamaica is planning its second debt swap in three years in an attempt to reduce the staggering debt which is crippling the government.
The country’s debt is currently 140% of the nation’s gross domestic product. The ratio is one of the highest debt to GDP ratios in the world. The debt swap is being done in an attempt to appease demands of the International Monetary Fund. Continue reading →
In data released Thursday afternoon, the Federal Reserve revealed that its holdings of U.S. government debt had increased to an all-time record of $1,696,691,000,000 as of the close of business on Wednesday. Continue reading →
Belize, a nation located on the Caribbean Sea bordering Mexico and Guatemala, won a 60 day reprieve after making a bond payment, holding a full national default on debt at bay.
The nation paid $11.7 million to their creditors which fell short of the total $23 million due on debt interest that was due on Wednesday. The bondholders accepted the partial payment and said that they would delay taking legal action. Continue reading →
The prime minister of France is calling for the French people to support the government as it tries to tackle a “crushing” debt crisis.
Jean-Marc Ayrault said the nation is preparing to deal with an “unprecedented” debt crisis. He said that anyone earning more than 1 million euros would be taxed at 75%. Continue reading →
Just hours after Standard & Poor’s downgraded Spain’s debt, the beleaguered nation reported a record high in unemployment.
Official figures show an employment rate of 24.4% with over 5.6 million people looking for work. Continue reading →
