BRUSSELS -(Dow Jones)- European Union countries need to restabilize their public finances over the next few years, Olli Rehn, European Commissioner-designate for economic and monetary affairs, said during testimony at the European Parliament.
Rehn, a Finn who just finished a five-year term as commissioner for EU enlargement, looks set to take over the bloc's economic portfolio at a difficult time.
All 27 EU countries appear to have had deficits above 3% of gross domestic product last year, breaking the EU's upper limit. Some countries, including Greece, which was on track for a deficit near 13% of GDP in 2009, are causing worries about the longer-term stability of EU public finances.
Rehn said the EU economy still needs stimulus measures to support economic growth, but added that state spending needs to be withdrawn "when the time is right."
The European Parliament is charged with final approval of the European Commissioners, who lead the European Union's executive arm--the body that steers EU trade policy, enforces antitrust laws and ensures countries follow the bloc's economic rules.
Copyright 2009 Dow Jones Newswires
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