EU Removes Bulgaria, Germany from Deficit Blacklist

EU's Economic and Financial Affairs Council has decided to close the excessive deficit procedures for Bulgaria and Germany, thus confirming that they have reduced their deficits below 3% of GDP.

Bulgaria reduced its shortfall to 2.1% of GDP in 2011, while Germany cut it to 1.0%.

A total of 21 of EU's 27 member states are now left under deficit proceedings. Estonia, Finland, Luxembourg and Sweden are the only other countries that have avoided the excessive deficit procedure.

A large number of procedures were opened subsequent to the global financial crisis and recession of 2008 and 2009

The excessive deficit procedure for Bulgaria was opened in July 2010, when the Council also adopted a recommendation, under article 126(7) of the Treaty, on corrective measures to be taken. Bulgaria had registered a general government deficit of 3.9 % of GDP
in 2009.

The Council called on Bulgaria to bring its deficit back below 3 % of GDP in 2011 at the latest. To achieve this, it called for a budgetary effort of at least ? % of GDP in 2011.

Bulgaria reduced its general government deficit to 3.1% of GDP in 2010 and to 2.1% of
GDP in 2011. The Commission projects the deficit to continue falling to 1.9% of GDP in
2012 and to 1.7% of GDP in 2013.

The Council concluded that Bulgaria's excessive deficit has been corrected. Bulgaria's general government gross debt was 14.8% of GDP in 2009, well below the EU's  60% reference value.

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