Report from the Commission Spain, Latvia, Austria, Finland Report prepared in accordance with Article 126(3) of the Treaty on the Functioning of the European Union

EUROPEAN COMMISSION REPORT FROM THE COMMISSION Spain, Latvia, Austria, Finland Brussels, 4.6.2025 COM(2025) 615 final Report prepared in accordance with Article 126(3) of the Treaty on the Functioning of the European Union EN EN 1. INTRODUCTION Article 126 of the Treaty on the Functioning of the European Union (TFEU) lays down the excessive deficit procedure. That procedure is further set out in Council Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure1, which is part of the Stability and Growth Pact. In accordance with Article 126(3) TFEU, this report assesses the situation of Member States vis-à-vis the deficit criterion. The format of this report, as in previous vintages, helps in the comparability of the different cases, while the case of each Member State is considered on its own merits. Regulation (EU) 2024/1264 amending Regulation (EC) No 1467/97 entered into force on 30 April 2024. This amending Regulation is part of a package together with Regulation (EU) 2024/12632 and Council Directive (EU) 2024/12653. Together, these three acts reformed the economic governance framework of the Union. The objectives of the reformed framework are public debt sustainability, and sustainable and inclusive growth through reforms and investments. The reformed framework also promotes national ownership, and has a greater medium-term focus, combined with a more effective and coherent...