Another country could go into an EU procedure to reduce spending.

09:34, Wed, Nov 26, 2025 Updated: 09:35, Wed, Nov 26, 2025

Helsinki skyline with Market Square and Helsinki Cathedral at sunset, aerial view, Finland

Finland could be recommended spending cuts due to its deficit (Image: Getty)

Debt levels of countries that use the Euro are not sustainable, according to the European Commission, leading to concerns about nations going bankrupt. The commission found that “immense demand on public finances” are leading to “sustainability risks”.

EU fiscal rules aim to keep nations’ public deficits within 3% of annual GDP and debt-to-GDP ratios below 60%. But EU economy commissioner Valdis Dombrovskis told the Financial Times that, despite substantial declines in recent years, “aggregate euro area deficit levels and debt levels have started to edge up again”, urging countries to “remain vigilant”. The commission also found that the Netherlands and Malta’s budgets for next year do not comply with EU fiscal rules, with spending in excess of what has been agreed with the commission. Spain, Croatia, Lithuania, Slovenia, Bulgaria, and Hungary are also planning to spend past limits, but by a smaller margin. Finland is set to be placed under an “excessive deficit procedure” after passing the 3% threshold due to “exceptional circumstances” - such as its border with Russia being closed. This has led to “very slow economic growth, basically economic stagnation”.

Invalid email

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy

Paris cityscape with Eiffel Tower and green trees on a sunny summer day, high angle view, France

France was placed in an excess spending procedure last year (Image: Getty)

The commission will recommend spending cuts to Finland if the majority of EU countries agree it is in breach of fiscal rules, but recognises “the difficult situation in which Finland finds itself” and also the “need to increase defence expenditure”.

France was placed in one of these excessive deficit procedures last year and last week failed to pass a budget to reduce spending. Despite this, the country is “compliant” with rules.

Dombrovskis warned, however, that the budget should be “to the extent possible close to the draft budgetary plan” due to the country’s deficit of 4.7%.

“We’ll be reassessing the situation once we see the outcome of budgetary discussions in France,” Dombrovskis said.

Italy’s deficit is coming down, according to prime minister Giorgio Meloni. The leader’s government says it will reach 3% this year and 2.8% next year, meaning it will leave the excessive deficit procedure.

The UK public deficit was provisionally estimated at 3.9% of GDP for the financial year to October 2025, an increase of 0.1 % compared to the same period in 2024.