Member states submit 2018 draft budgetary plans

Nineteen European Union (EU) member states have submitted their 2018 Draft Budgetary Plans (DBP) to the Eurogroup, the body of ministers representing all eurozone countries.

Luxembourg is one of five countries to have provided a DBP deemed to be compliant with the Stability and Growth Pact (SGP).

On Monday, Portugal's finance minister, Mario Centeno, was elected the next president of the Eurogroup and will replace Jeroen Dijsselbloem in January.

Luxembourg's Pierre Gramegna was one of the last two candidates for the role.

In a statement, the Eurogroup "invites the member states to provide the draft budgets and the Commission to provide its assessments as soon as possible to allow for an in-depth discussion in the Eurogroup and its preparatory committees".

None of the submitted DBPs were in "particularly serious non-compliance" with the SGP, and, as a result, the Commission will not request a re-submission.

Based on the Commission's assessment, Belgium, Italy, Portugal, Slovenia and Austria are at risk of non-compliance with the SGP, under the preventive arm.

"According to the Commission assessment, the DBPs of these member states might result in a significant deviation from the adjustment path towards their respective MTOs [Medium-Term Budgetary Objectives]," the statement reads.

"In addition, Italy, Belgium and France are also not expected to comply prima facie with the debt reduction benchmark in 2018."

Germany, Austria and Spain submitted DBPs on a no-policy-change basis.

Greece was not assessed as part of this exercise, as it is subject to a macro-economic adjustment programme.

Germany, Lithuania, Latvia, Luxembourg, Netherlands and Finland – all under the preventive arm – are said to be compliant with the 2018 SGP.

The Eurogroup highlighted that member states that have outperformed their medium-term objectives could use their favourable budgetary situation to prioritise investments to boost potential growth while preserving the long-term sustainability of public finances.