Commission clears Cyprus over excessive deficit

 Cyprus and three other EU countries appear to be off the hook after the European Commission judged that measures the four countries took to reign in their deficits are sufficient.

Hungary, the fifth country in the group that has been under scrutiny, could face sanctions after the commission decided its measures were not enough.

Cyprus had passed austerity measures late last year aimed at cutting the deficit down to 2.4 per cent this year, from an expected 6.0 per cent in 2011.

Before approving the budget and the measures, MPs included more cuts, which they said could bring the deficit down to below 2.0 per cent.

The thresholds set by the EU are a 3.0 per cent deficit-to-GDP ratio and debt-to-GDP ratio of 60 per cent.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.