EU Proposes Deficit Procedure for Austria Warns Romania of Budget Risks

Austria and Romania end up in the shame corner in the EU Commission's yearly reports on the state of the economy.

» Published: June 04 2025

EU Proposes Deficit Procedure for Austria Warns Romania of Budget Risks
Photo: Omar Havana/AP/TT

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In the spring package presented on Wednesday, it is proposed that a so-called deficit procedure (EDP) be initiated for Austria to get the country to handle its budget deficit. Romania, which is already under scrutiny, is simultaneously warned of an "obvious risk" that it will not be able to resolve its deficit by 2030.

In parallel, the EU Commission approves the applications from 16 EU countries to break with normal rules in order to be able to invest extra in their defense. The possibility of breaking with the rules is part of the EU Commission's large defense package from earlier this spring. Sweden is among the 11 countries that have so far chosen not to apply to break with the rules.

"The priorities in this year's spring package can be summarized in two words: competitiveness and security. This takes us back to the basics of the EU project: peace and prosperity", writes Economic Commissioner Valdis Dombrovskis in a press release.

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By TTTranslated and adapted by Sweden Herald
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