The European Commission (EC) has terminated its excessive budget deficit procedure against Bulgaria, as well as against Finland, Denmark and Cyprus, the European Union's executive arm said in a statement on Thursday.

The EC has concluded that "no further steps in the procedure are needed at present" as Bulgaria has taken measures representing adequate progress towards the correction of the excessive deficit.

The commission expects Bulgaria to have met the budget gap target of 3.8% of gross domestic product in 2010, as envisaged in the revised 2010 budget.

The EC has also projected a deficit of 2.9% of GDP for 2011.