Cyprus Minister of Finance Kikis Kazamias expressed satisfaction over the European Commission`s assessment that Cyprus has taken effective action to correct its excessive budget deficit in a timely and sustainable manner.

Speaking to CNA, Kazamias said that Cyprus can be optimistic over the course of the public finances, underlining that the priority shifts towards the strict implementation of the fiscal consolidation measures and towards the measures that would stimulate economic growth.

Cyprus, along with Belgium, Hungary, Malta and Poland were placed under excessive deficit procedure by the Commission, following its 2011 Autumn forecasts which showed that these states were at risk of not meeting their obligation to correct their excessive deficits. After approving two fiscal consolidation packages, the Cypriot House of Representatives approved the 2012 state budget along with further cuts in state expenditure, reducing Cyprus` deficit from 4.7% of GDP, provided for in the EC`s autumn forecasts, to 2.7%.

“I was expecting this decision. It is pleasing to the extent that it confirms that the right corrective measures have been taken,“ Kazamias told CNA, adding that “the priority now is non other than the need for strict and disciplined implementation of these correct decisions.“