EC puts '84 deficit at $2.3 billion
The European Community is expected to have a budget shortfall of up to $2.3 billion this year, member governments were told Tuesday. Diplomats said European Commission President Gaston Thorn gave the estimate to Community foreign ministers when they resumed a two-day meeting here.
Mr. Thorn said the commission can legally raise only an extra $35 million because it has virtually exhausted its only flexible source of revenue, a 1 percent share of the value-added tax levied in member states.
Diplomats said Thorn told the ministers the commission would do its utmost to cut costs, but a deficit of up to $2.2 billion appeared unavoidable.