(MENAFN- Gulf Times) The soaring costs of handling the unprecedented influx of refugees into Europe have opened up new fault lines within the EU in its never-ending debate about the bloc's budget rules.
In the past, Germany, as the self-appointed arbiter of fiscal rectitude, has tended to find itself pitted against countries such as France and Italy in the constant tug-of-war over spending targets.
But this time, it is a fellow austerity ally, Austria, which is at loggerheads with Berlin as the humanitarian crisis threatens to stretch member states' finances to the limit.
'It is not fair if those member states that are particularly humane and take on the task and cost of looking after the asylum-seekers are punished by Brussels for excessive spending,' Vienna's finance minister Hans-Joerg Schelling said.
He made a plea for the European Commission to apply a special clause in the European Stability and Growth Pact allowing the deficit ceiling of 3.0 percent of output to be exceeded in exceptional circumstances.
Austria's public deficit is set to reach 2.0 percent of gross domestic product (GDP) this year, according to forecasts released in the spring. But it has had to cope with tens of thousands of migrants passing through its borders en route to Germany.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.