Following November’s G20 summit, the ECOFIN council and G20 finance ministers gathered in Brussels yesterday to discuss a follow up to the summit. The European Commission (EC) has set the budget deficit at a 3% GDP limit for eurozone countries including Greece, the UK, France and Germany.

Member countries will be given two years to comply with the said limits. The EC criticised Greece in particular for its growing deficit and inconsistent economic statistics.

Correspondingly, the Chambers of Commerce of all G20 countries has created the “C20 Group” in response to the issues that have been identified. The C20 will act as the business counterpart of the official Group of 20 countries. Its goal will be to support the original 20 by taking a detailed look at solutions that are available to re-establish economic stability and maintain global growth.

Greece has been moved to the second phase of the EU’s excessive deficit procedure which requires a stricter surveillance of Greece’s budgetary cut backs. This phase also requires Greece’s finance minister, George Papaconstantinou, to produce regular fiscal policy progress reports every month.

‘There will be a discussion (next month), but the final decision for the timetable of reduction of deficit will be in February,’ said Papaconstantinou during a news conference yesterday.

Germany announced consolidation of its finances yesterday and aims to reach the EU’s public deficit limit by 2013. With its deficit predicted to hit 3.7% of GDP this year, Germany has stated its intention to start consolidating its finances from 2011. Finance Minister Wolfgang Schaeuble said: ‘We will accept the conditions of the deficit procedure and bring our total public deficit under the 3% level by 2013.’

In contrast, France has stated that an additional year would be needed for their targets to be met. Austria should be shown more tolerance by the EU said Minister Josef Proell. Proell stated the latter in the light of Austria’s support for its banking system, a support system of €100bn that was given to its banks as a result of the financial crisis.

The main purpose of the C20 group is to be the voice of small and medium sized enterprises within the G20 countries, this in turn will affect the economic and financial policies discussed at the G20 summit.

Honorary President of EUROCHAMBRES Chri Leitl said: ‘As the G20 grows in importance in addressing the world’s economic challenges, it is crucial that they can rely on a ‘mirror’ business group that will provide the real economy’s perspective.’