EC sends 'early warning' to Malta over risk of fiscal violation in 2012

European Commissioner Olli Rehn has announced that he has officially sent a ‘warning letter’ to Malta and four other EU members states.

22 November 2011, 12:00am
by Karl Stagno-Navarra

1 min read

Olli Rehn formally announced to reporters today, that early warning letters have been sent to Malta, Belgium, Cyprus, Poland and Hungary as they risk violating fiscal rules in 2012.

He added however, his belief that all five countries "will take the necessary measures (to combat the situation)."

Rehn affirmed that stability bonds are an intergral part of the measures to help stabilise the eurozone.

The European Commissioner said that doubts on budget cuts are linked to debt turbulence, and added that stressed nations must hike austerity efforts.

He talks up Ireland & Portugal, saying they have made good progress but urged Greece and Italy to implement bold new steps.

Olli Rehn is confident Italy can overcome the loss of market confidence and euro bonds would need to be closely monitored.