UK deficeit -- What can/should the EU do about it?

[AtheneNoctua]

news.bbc.co.uk/1/hi/business/7447531.stm

And does anyone know if the new EU Constitution will give the EU control over our financial policies?

Well it doesn't sound prudent to me, Brown's made a hash of things that's the upshot.

The EU can do nothing about it other than issue a formal warning as the UK is not a member of the single currency (which these guidelines were put in place to support) - the only reason that the UK is included at all is that the EU tries to ensure that all countries remain on a similar (albeit dual) economic track with a view to subsequent integration into the Eurozone.

To be honest, although it is theoretically capable of taking action against Eurozone countries who breach similar fiscal guidelines (including France, Germany and Italy who have breached guidelines repeatedly), in reality very little action is ever taken against these countries beyond disciplinary procedures.