Press Release: Commission recommends abrogation of excessive deficit procedure for Germany, Greece and Malta

The European Commission decided on 16 May 2007 to recommend that the Council abrogates the excessive deficit procedure (EDP) for Germany, Greece and Malta since in 2006 their budget deficit fell below the 3% of GDP ceiling on the back of a significantly improved structural budget balance reflecting permanent measures, and is projected to decrease further in 2007 and 2008. This is accompanied by favourable developments in the public debt ratio in 2006 and the projection for all three countries of a decreasing trend in 2007 and 2008. This achievement indicates a credible and sustainable correction of the excessive deficit situation, and shows that such an adjustment is compatible, and indeed supportive, of economic growth. Looking ahead, in view of their still high level of debt and the projected increase in age-related expenditure, it remains a key objective for Germany, Malta and especially Greece to improve the long-term sustainability of their public finances by achieving rapidly their medium-term objective (MTO) of balanced budgets.

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