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The cut-off measure would also apply to fisheries and rural development funding (Photo: ec.europa.eu)

EU to link regional funds to strict deficit rules

The EU commission on Thursday (6 October) proposed that from 2014 onwards, the bloc's structural funds for poorer regions be linked to strict budget deficit rules under the new economic governance legislation.

In line with the austerity-driven 'fiscal discipline' promoted by the EU's net contributors, the commission wants to be given the power to suspend the funding if a country pursues "unsound macro-economic policies" or has weak administrative capacity.

At the same time, the ...

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