BRUSSELS, Jan. 28 (UPI) -- The European Commission granted one-year extensions to Malta and Lithuania to bring public debt to under 3 percent of their gross domestic products.
"In the case of Malta and Lithuania ... the worsening in the economic situation since the recommendations were made justifies extending the deadline by one year," said Commissioner for Economic and Monetary Affairs Joaquin Almunia.
The commission did not grant extensions to Hungary and Latvia, the Euobserver reported Thursday.
"Hungary and Latvia ... seem on track to bring their deficits to below 3 percent by the agreed deadlines, but they need to pursue their efforts to ensure this really happens," he said.
With the extensions, Malta, like Hungary, has until 2011 to reduce their debt. Lithuania and Latvia have until 2012, the EUobserver said.
In Davos, Switzerland, New York University economics Professor Nouriel Roubini warned that Spain's economy is a potential threat to economic stability in the region. Others have warned that debt in Greece has become a destabilizing factor.
"The euro zone could drift, essentially with a bifurcation, with a strong center and a weaker periphery," Roubini said.
"If Greece goes under, that's a problem for the euro zone. If Spain goes under, it's a disaster," he said.
