17/07/2006 (Agence Europe) - The Commission is due to assess on 19 July whether Germany has taken the measures necessary to ensure that its public deficit drops below the limit value of 3% of GDP by 2007 at the latest. It could decide to suspend, but not yet to repeal, the excessive deficit procedure against Berlin, if it decides that the country is on its way to respecting its commitments. It will terminate the procedure once it has evidence that the German deficit has indeed fallen below 3% of GDP. The Ecofin Council on 13 March decided to: - pursue the procedure against Germany (whose deficit exceeded 3% of GDP from 2002 to 2005; EUROPE 9151); - give Berlin until 14 July to take measures to bring the deficit below the threshold of 3% by 2007 at the latest. In all likelihood, the Commission should decide to put the procedure against Germany “on the back burner” as Germany should, thanks to the measures it has taken, in particular raising VAT from 16 to 19%, bring its deficit down below 3% perhaps as soon as 2006. Germany has just sent data to the Commission which demonstrate that its deficit could drop to 3% or less in 2006 and 2.5% in 2007.