Press Release: Commission recommends abrogation of excessive deficit procedure for Italy, Portugal, the Czech Republic and Slovakia

On 7 May, 2008, the European Commission recommended that the Council abrogates the excessive deficit procedure (EDP) for Italy and Portugal since their budget deficit fell below 3% of GDP in 2007 and is projected to remain below this ceiling also in 2008 and 2009. This means that for the first time since 2002 not a single euro-area Member State is subject to the close surveillance of its public finances provided for in the 'corrective arm' of the Stability and Growth Pact. The Commission concluded that the conditions were also met to close the EDP procedures concerning the Czech Republic and Slovakia, which in the latter case also clears a hurdle for adopting the euro. Assuming the Council endorses the recommendations, only two countries will be left in EDP (Poland and Hungary), compared with 12 in spring 2006 – the most ever to be simultaneously in EDP.