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The 27-nation EU believes that its economy cannot survive on its own and an abrupt withdrawal of stimuli would choke any recovery (Photo: European Commission)

Budget toll in EU states to continue into 2010

European capitals are likely to continue running high deficits in 2010, but the following year should see a "very substantial" reduction in countries' debt burden, the European Commission has suggested in a strategy document for EU finance ministers.

"Considering the fragility of the recovery, no consolidation is advocated on aggregate in 2010, as the planned stimulus measures should still be implemented and government revenues remain subdued," reads the paper prepared for a ministeria...

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The 27-nation EU believes that its economy cannot survive on its own and an abrupt withdrawal of stimuli would choke any recovery (Photo: European Commission)

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