The Australian Economy and Financial Markets

The developments in 2002 started with the Commission’s recommendation for an early warning when it became apparent that Germany and Portugal would deviate significantly from the envisaged consolidation paths and would be close to the 3% of GDP limit for the deficit. When the Commission launched its annual review of public finances in Member States, rumours spread out on 17 January that it was considering an early warning to Germany and Portugal. This early warning was then recommended officially by the European Commission on Wednesday 30 January, as expected since Commissioner Solbes had clearly indicated his intention to launch the procedure beforehand. After the Commission launched the initiative, a...