Large EU economies to breach deficit limits as economic outlook worsens

Large EU economies to breach deficit limits as economic outlook worsens Three of the eurozone’s five largest economies will bust through EU-mandated deficit limits this year as the bloc’s recession continues to deepen, according to highly anticipated European Commission forecasts published on Friday. In addition to the anticipated breaches by France, Spain and the Netherlands, the currency union’s third-largest economy, Italy, will come within a hair’s breadth of missing the limit of 3 per cent of economic output, with a 2013 deficit forecasted at 2.9 per cent. The across-the-board misses come as the eurozone’s economic picture continues to darken. Gross domestic product in the bloc is now expected to drop 0.4 per cent this year, down from a 0.3 per cent projection just six months ago.
http://link.ft.com/r/YIQXNN/LSB3UG/GKXE28/JEXP0X/SU5R7D/FW/h?a1=2013&a2=5&a3=3