Tag Archives: Cyprus

Deficit Crisis: Cyprus, Denmark And Finland Join The Watchlist

Cyprus, Denmark and Finland have joined the ranks of EU member countries with government deficits deemed high enough to pose a threat to the wider European economy. The commission is now recommending they be placed on its list of countries warranting further scrutiny of public finances. Until recently, these countries seemed to be doing well.

“The sudden turnabout shows the severity of the economic crisis, which has wreaked havoc with public spending.”

Olli Rehn

Including the three newcomers, EU’s watchlist now consist of all but one of the 27 member countries. Only Luxembourg is not running a deficit that is well over 3% of gross domestic product – the official EU limit, the EU commission write on its website.

Luxembourg finished 2009 with a shortfall of around 2%.

Cyprus recorded a shortfall of 6.1% of GDP last year.

Deficits are expected to reach 5.4% this year in Denmark and 4.1% in Finland.

Setting Deadlines

As it does with all countries under scrutiny, the commission has proposed deadlines for Cyprus, Denmark and Finland to correct their deficits.

Finland would have until 2011, while Cyprus and Denmark would have until 2012 and 2013 respectively.

So far, 12 member countries have taken what the commission considers to be effective action to close their gaps, cutting government spending and introducing revenue-boosting measures as promised.

The Fab Four

Among them are Ireland, Italy, Portugal and Spain – 4 countries at the center of concern about high national debt looming over the euro zone, the EU commission points out.

Germany, meanwhile, has moved to boost consumer spending – in response to worries that the country’s fat trade surplus is hurting other EU economies.

But the country has also outlined deficit-reduction measures for 2011 and beyond.

The other countries reviewed in the latest commission report are Austria, Belgium, the Czech Republic, France, the Netherlands, Slovakia and Slovenia.

A Sudden Turnaround

Until recently, both Cyprus, Denmark and Finland seemed to be doing well, the EU commission writes.

EU monetary commissioner Olli Rehn says the sudden turnabout “shows the severity of the economic crisis, which has wreaked havoc with public spending.”

The 3% limit on deficits – part of the EU’s stability and growth pact – is meant to prevent imbalances that could undermine confidence in the euro zone, as happened last month during the Greek debt crisis.

More on EU’s excessive deficit procedure

Related by the Econotwist:

EU Deficit Increased By14 Billion Euro In First Quarter Of 2010

Danish Homeowners Are Insolvent

Denmark In Danger Of Becoming The “New Greece”

Pressure On Spain To Cut More

EU Officials Fears Second Depression And War

Finns Outraged By Swedish Plans To Bring Estonian Builders To Finland

Swedbank Buy Greek Bonds With Estonian Money


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Filed under International Econnomic Politics, National Economic Politics

Planes Forced To Change Destination Due To Ash Treath

Two aircrafts on route from Cyprus to Gothenburg Airport in Sweden and had to make a last minute change of destination because they were not safe enough for high levels of volcano ash in the air.

“The aircrafts are now undergoing an extended check before they will be ready for departure back to Cyprus later this afternoon and tonight.”

Lena S. Petersson

The ash levels are divided into three categories; the planes were only cleared for level one, while the airspace around  Gothenburg and at the airport, is located at level two, the Norwegian web site dagbladet.no reports.

The two planes had to make landings in another Swedish airport, Örebro, where they’re now are undergoing maintenance.

“It was not possible to fly to the airport at Gothenburg, so the planes landed in Örebro. This was a planned diversion, which was settled last night,” Lena S. Petersson, communications director of Star Tour, says to the Norwegian news paper Dagbladet.

The aircrafts are now on the ground for an extended technical checks that have become a  routine because of the high ash levels in the air, the news paper writes on its web site.

Reported Ash In Engines

It was initially reported by the tour operator Star Tour that it was found ash in all engines.

But now the tour operators communication director say that this has not been confirmed.

“It was only a matter of if there was ash in the engines,or not, but it has not been proved by our people in Örebro. The aircraft is undergoing an extended check before they are ready for departure back to Cyprus later this afternoon and tonight, “ Petersson says.

It is the first time Star Tour experience ash problems after air travel began to work more normally.

Still, the incident raises more questions about the safety of air travel under these conditions.

Related by the Econotwist:

Ash Clouds: Chaos At Norwegian Airports (Update)

Threat To Air Travel From Icelandic Volcanos Still Troubling

Volcano Ash Can Send The Earth Into “Deep Freeze”

Stunning Volcano Pictures

Iceland: New Eruption – More Ash

Volcano Ash Can Send The Earth Into “Deep Freeze”

“Mini Ice Age” Underway?

As Climate War Intensifies, So Does Extreme Weather

When Will God Destroy Our Money?

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Filed under International Econnomic Politics, National Economic Politics