EU faults Britain over missed deficit targets

The European Commission says Britain must reign in spending to hit deficit targetsThe EU said Wednesday that Britain had not done enough to meet budget deficit targets and would have to remain under Brussels oversight for another two years to make sure it does. The European Commission said Britain, despite tough spending cuts, remained in breach of the 28-nation bloc’s deficit rules and gave it another two years, to 2016-17, to put its fiscal house in order. “These recommendations are not about Brussels lecturing governments,” EU Commissioner for Economic Affairs Pierre Moscovici said. The Commission, the EU’s executive arm, said Britain’s budget deficit — the shortfall between revenue and spending — stood at 5.2 percent of annual economic output in the current 2014-15 financial year, still well above the EU limit of three percent.

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