Press Release: Commission recommends abrogation of excessive deficit procedure against Cyprus

The European Commission on 21 June 2006 decided to recommend that the Council abrogate the excessive deficit procedure (EDP) against Cyprus after the deficit fell to 2.4% of GDP in 2005 and was projected to decrease further in 2006 and 2007. Cyprus’s debt to GDP ratio also dropped to 70?%, in 2005 and was seen at 68% in 2007. Cyprus would be the first of the six new Member States that were put into the EDP upon European Union membership, to see the procedure abrogated. It would also be the first procedure to be closed since the Netherlands, in June 2005. In total, 11 countries remained in excessive deficit procedure, five of which were in the euro area.

European Commission: DG Economic and Financial Affairs: About: Activities: Fiscal surveillance: Ongoing procedures under article 104 of the Treaty (Excessive Deficit Procedure): Cyprus http://ec.europa.eu/economy_finance/about/activities/sgp/edp/edpcy_en.htm

---