Brussels, 24/03/2009 (Agence Europe) - After examining the stability programme for Cyprus, the Commission notes that the country should record a deficit of nearly 1% of GDP in 2009 (0.8%), against excess of the same order last year. Although, according to the Cypriot forecasts, the deficit will not exceed 3% in coming years (-1.4% in 2010 and -1.9% in 2011 and -2.2% in 2012), this trajectory is not justified in the Commission's eyes given the still only relatively favourable economic prospects. It therefore recommends that Cypriot authorities give priority to cautious budgetary policies and to the strengthened viability of public finance. Cyprus should above all: - implement recovery measures, avoiding further deterioration of public finance in 2009; - put an end to the budgetary decline expected in 2010 and the following years by limiting expenditure in order to ensure a healthy medium term budgetary situation; - and improve long-term viability of public finance by pursuing reform of retirement and healthcare systems. (A.B./transl.jl)