Brussels, 06/07/2010 (Agence Europe) - The European Commission decided on Tuesday 6 July to initiate an excessive deficit procedure against Bulgaria - Article 126(3) of the Treaty. The information submitted by the Bulgarian authorities in April 2010 and subsequently validated by Eurostat reveals a general government deficit of 3.9% of GDP in 2009. Hence the move by the Commission, which concluded that, while the government gross debt at 14.8% of GDP in 2009 fulfils the respective criterion in the Treaty (the reference value being 60%), the requirement on the deficit criterion was not fulfilled because the deficit in 2009 was not close to the reference value of 3% of GDP. Thus, the Commission recommended that the Bulgarian authorities bring the general government deficit below 3% of GDP “in a credible and sustainable manner by 2011 at the latest”. To this end, Bulgaria should: - take the necessary measures to avoid the 2010 deficit going beyond the 3.8% of GDP forecast; - ensure a fiscal effort of at least ¾% of GDP in 2011; - and specify and implement the measures that are necessary to achieve the correction of the excessive deficit by 2011. Bulgaria is also invited to: - improve its fiscal governance and transparency; - report on the progress made in the implementation of the Commission recommendations in the forthcoming updates of the convergence programme; - ensure that budgetary consolidation is sustained after the excessive deficit has been corrected. Finally, the Bulgarian authorities are encouraged to improve the efficiency of public spending by fully implementing the planned structural reforms in the area of public administration, healthcare, education, and pensions. (O.L./transl.rt)