Brussels, 12/05/2010 (Agence Europe) - The European Commission has published a raft of reports on application of the Stability and Growth Pact to Bulgaria, Cyprus, Finland and Luxembourg based on Article 126.3 of the EU Treaty. The reports examine whether the national deficits of the countries in question are close to the 3% of GDP maximum and whether any overshoot is exceptional and temporary. Only Luxembourg meets the criteria, expecting to have a deficit of 3% in 2010, explains the Commission, which will soon be announcing excessive deficits and issuing proceedings for Bulgaria, Cyprus, Denmark and Finland (Article 126.5).
The Commission has examined the updated Stability Programme for Cyprus, whose deficit is expected to hit 6.1% in 2009 but return to below 3% in 2013 (-2.5%). As for most other member states, the Commission comments that the macroeconomic forecasts used by the Cypriot government are rather optimistic. (A.B./transl.fl)