The Commission concludes that Romania has taken effective action to correct its budget deficit and proposes extension of deadline to 2012.
The EU budgetary surveillance framework implies, inter alia, that excessive deficits should be avoided. The excessive deficit procedure (EDP), as the "corrective arm" of the Pact, is regulated by Article 126 of the Treaty and further specified in Council Regulation 1467/97.
The Commission concluded that Romania had taken effective action in compliance with the Council recommendations of July 2009. But in view of a sharper than expected recession in 2009, the Commission proposes extension of deadline for the correction of the deficit below 3% of GDP by one year to 2012.
The Ecofin Council will discuss the recommendations at the upcoming February meeting. If adopted, Romania will then have six months to indicate what action it intends to take to reduce the budget deficit.
>> Press release IP/10/137 Commission
concludes Romania has taken effectve action...
>> Ongoing excessive deficit procedure: Romania