The European Commission (EC) will propose initiating an excessive deficit procedure against Bulgaria after it is determined that the country does not meet the European Union’s fiscal criteria, confirmed EU Commissioner for Economy and Productivity Valdis Dombrovskis.
Speaking after a meeting of the Economic and Financial Affairs Council (ECOFIN) in Luxembourg, Dombrovskis said that the Commission had assessed the budgetary situation of several member states and concluded that Bulgaria does not meet the prescribed conditions regarding the budget deficit, the Novinite website reported Saturday.
According to EU rules, the excessive deficit procedure can be initiated when a country’s budget deficit exceeds three percent of gross domestic product, while public debt exceeds 60 percent of GDP.
As part of the procedure, the country is given a deadline to implement measures that would bring the deficit back within the permitted limits.
If the country does not comply with the recommendations, financial sanctions can be imposed.
The European Commission’s proposal now needs to be considered by EU member states as part of the further procedure.
