ECOFIN begins excessive deficit procedure for Cyprus

The EU Economic and Financial Affairs Council (ECOFIN) decided Tuesday to begin an excessive deficit procedure for Cyprus, Finland, Bulgaria and Denmark.

Cyprus was represented at the Council by Minister of Finance Charilaos Stavrakis.

The ECOFIN said that 2012 is the Cypriot government's deadline to bring the budget deficit below 3% of GDP. For Denmark, the deadline is 2013, while for Bulgaria and Finland 2011.

The Council urged the four countries to announce until the 13th of January 2011 the measures they will take in order to bring their deficit below 3% of GDP.

According to the data given by the Cypriot authorities in April, Cyprus’ deficit reached 6.1% of GDP in 2009.

ECOFIN urged Cyprus to limit its deficit to 6% by the end of 2010 and then reduce it by 1,5% of GDP yearly until it reaches below 3% in 2012 the latest.