The government promised to balance its budget under EU pressure
The government promised to balance its budget in 2019 only after the European Commission threatened to identify the budget as non-compliant with the country’s obligations. Initially, the government had planned on a 0.1% of GDP deficit, but this would violate the Stability and Growth Pact rules, due to excessive growth in spending. The government therefore cut the planned reserves and presented a balanced budget. International institutions as well as the independent fiscal responsibility council RRZ expect the government to miss its zero deficit target and post a deficit anyway.
