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EU Launches Excessive Deficit Procedure Against Finland Amid Fiscal Breach

by THEFUTURE.TEAM

January 21, 2026

The European Union’s Economic and Financial Affairs Council has initiated an excessive deficit procedure against Finland, marking a decisive intervention amid mounting fiscal concerns. The move comes as Finland’s state deficit has surged past the limits prescribed under EU fiscal discipline, reflecting broader challenges in managing public finances within the Union.

Fiscal Breach Triggers Regulatory Action

EU finance ministers, assembled under ECOFIN and led by Finance Minister Makis Keravnos, have confirmed that Finland’s deficit escalated to 4.4 per cent of GDP in 2024 and is projected to remain elevated at 4.3 per cent in 2025. Despite Finland’s invocation of the national escape clause for defense spending—a provision that allows for a temporary overshoot of the deficit by up to 1.5 per cent—the measures have proven insufficient to mitigate the broader fiscal imbalance.

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Mandated Corrections and Timely Interventions

The Council has issued a formal recommendation delineating a mandatory fiscal adjustment path, alongside a strict timeline requiring corrective measures to be implemented by April 30, 2026. In addition, specific constraints were imposed on the growth of net public expenditure: no more than 2.5 per cent in 2026, 4.1 per cent in 2027, and 5.9 per cent in 2028. These rigorous stipulations are designed to guide Finland back within the EU’s fiscal parameters as established by the Stability and Growth Pact.

Strengthening Economic Governance Across the EU

Under the Stability and Growth Pact, EU member states must maintain their budget deficits below 3 per cent of GDP and ensure that public debt does not exceed 60 per cent of GDP. The excessive deficit procedure is a vital instrument that not only supports the correction of fiscal imbalances but also fortifies the overall sustainability of public finances across the European Union.

Broader Implications for EU Economic Policy

The decision on Finland was discussed alongside key eurozone policy priorities during the ECOFIN session. The meeting, presided over by Keravnos, also covered critical topics such as Bulgaria’s progress towards adopting the euro, strategic economic policies for 2026 based on European Commission recommendations, outcomes from recent G7 finance meetings, and discussions on leadership roles within the European Central Bank. These deliberations underscore the interconnected nature of fiscal policy and broader economic governance within the EU framework.

Conclusion

This decisive fiscal intervention against Finland highlights the EU’s steadfast commitment to maintaining fiscal discipline. By enforcing stringent corrective measures and clear timelines, the Council aims to ensure long-term financial stability, bolstering confidence in the Union’s economic management at a time of considerable global uncertainty.

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Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

by THEFUTURE.TEAM

September 18, 2026

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

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Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.