28/07/2011 (Agence Europe) - Commission optimistic about budget deficits. On Thursday 28 July, a spokesperson for the European Commission declared that “we are completely confident in the ability of the Cypriot authorities to fully respect their commitments” with regard to the budget - namely, to have a budget deficit below 4% of GDP in 2011 and 2.5% in 2012. Confronting a serious political and economic crisis following the accidental destruction of the national electricity grid, which produced 60% of the island's electricity, the Cypriot government resigned, in an effort to allow a new team to be set up, which would be acceptable to the people of the country. On the previous day, the US rating agency Moody's justified a new cut in the Cypriot rating, due to the serious crisis in Cyprus and the sharp exposure of the banks of this country to the Greek economy (EUROPE 10428). (M.B./transl.fl)