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UPDATE 1-EU concerned at quality of Bulgarian statistics

Published 06/08/2010, 12:03 PM
Updated 06/08/2010, 12:07 PM

* EU considers Eurostat mission to Sofia over statistics

* Finance ministry says not worried about the pending check

* Bulgaria upped its 2009 fiscal gap on hidden deficits

(Adds Bulgarian finance ministry comment)

LUXEMBOURG, June 8 (Reuters) - The European Commission is concerned about the quality of Bulgarian statistics and wants to send a mission there when Eurostat gets new auditing powers, Economic and Monetary Affairs Commissioner Olli Rehn said.

European Union finance ministers granted The European Union's statistics office Eurostat wide auditing powers on Tuesday to help prevent another debt crisis in the EU, like the one sparked by years of faulty Greek deficit and debt numbers.

"We have had some concerns as regards the statistical performance of Bulgaria and are considering sending a mission shortly ... which has all these audit powers," Rehn told a news conference on Tuesday.

But he noted that the European Parliament still had to express its opinion on the ministers' decision and it will then have to be endorsed by EU leaders, possibly on June 17, before it comes into force.

The Bulgarian finance ministry said it was expecting such a mission since May, when it was forced to increase the fiscal gap for 2009 to 3.7 percent of GDP from the 1.9 percent it reported under EU accounting rules after revealing hidden deficits.

"The mission is expected...It neither surprises us, nor worries us," the ministry said in a statement.

In April, the new centre-right government revealed dozens of unaccounted public procurement deals signed by the previous Socialist-led cabinet. [ID:nLDE63813A]

The hidden deficit forced Bulgaria to delay its euro zone entry plans, and hit the credibility of the EU's poorest nation.

The EU executive commission has started a disciplinary action against Bulgaria, along with Cyprus, Denmark and Finland for running budget deficits above the EU's ceiling of 3 percent of GDP.

The government plans to increase its 2010 budget deficit target to 4.8 percent of GDP on a cash basis after an initial 0.7 percent, due to the prolonged recession which has slashed tax revenues.

Under EU rules, the 2010 fiscal deficit is expected to be around 3.8 percent of GDP, the finance ministry said.

(Additional reporting by Tsvetelia Tsolova in Sofia) (Reporting by Jan Strupczewski, editing by Luke Baker, Ron Askew)

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