EU Recommends Ending Italy Excessive Deficit Surveillance

The European Commission is ready to end its special budget deficit surveillance of Italy after Rome brought the shortfall back within EU rules, a senior official said Wednesday.

EU Industry Commissioner Antonio Tajani said in a tweeted message that the Commission had recommended "abrogating (the) decision on the existence of an excessive deficit in Italy," thereby removing the country from the EU's so-called Excessive Deficit Procedure program.

Separately, Employment Commissioner Lazslo Andor tweeted that Hungary would also be removed from the EDP list.

The official announcements, widely anticipated, are due at 1200 GMT when the Commission is expected to say that several countries will be removed from the EDP list, which currently counts 20 out of the 27 EU member states.

EU rules require that a country keep its public deficit -- the shortfall between revenues and spending -- to no more than 3.0 percent of gross domestic product.

Italy is expected to post a public deficit of 2.9 percent this year, falling further to 2.5 percent in 2014, even as the country's total accumulated debt hovers around 130 percent of GDP, way over the EU 60-percent limit.