EU warns more countries on rising debt

BRUSSELS, Nov. 12 (UPI) -- The European Commission has warned member states they would have to take steps to curtail rising national deficits.

The most stern warning went to Greece, the Euobserver reported Thursday. But nine other member states were given their first warnings. The EU's Stability and Growth Pact stipulates that national deficits should be held under 3 percent of each country's gross domestic product.

The average national deficit among member states has tripled as a percentage of the GDP since 2008 due to the cost of economic stimulus measures and lower tax revenues with increased demand for government services that occurs during a recession.

"Even if the deficit is contained in 2010 and 2011 at the present level … (this) will trigger a very rapid increase in the public debt-to-GDP," said EU economy commissioner Joaquin Almunia.

Almunia said Greece, which received a warning in April, had "very serious problems."

Greece, Spain, France, Ireland and Britain were given warnings in April. Austria, Germany, the Netherlands, the Czech Republic, Slovakia, Slovenia and Portugal, Belgium, and Italy were issued warnings this week, the EUobserver reported.