The European Union's executive said on Thursday that four countries, including Bulgaria, have been stricken off its deficit watch list as they have taken adequate steps to correct it.

"The Commission concluded that on the basis of currently available information Cyprus, Finland, Bulgaria and Denmark have taken action representing adequate progress toward the correction of the excessive deficit," it said in a statement.

"[For] these member states, no further steps in the excessive deficit procedure are needed at present," the EU's executive arm said in a brief statement.

The European Commission launched in July last year an excessive budget deficit procedure against Bulgaria and 24 other EU member-states to ensure that the countries reduce swiftly their state spending, and keep their budget deficit below 3% of the GDP.

At the end of April last year Bulgaria's Prime Minister Boyko Borisov and Finance Minister Simeon Djankov said the previous Socialist-led government had kept them in the dark over BGN 2.16 B contracts, which pushed the 2009 deficit up from a projected 1.9% to 3.7% of GDP

In the first of its twice-yearly reviews of government finances in the 27-member bloc, Eurostat said the Bulgarian government's budget deficit was 3.9% of gross domestic product last year.

Prime Minister Boyko Borisov placed the blame squarely on the shoulders of the country's former Socialist-led administration, saying the government has lied to the EU colleagues about the country's readiness for the euro zone, being unaware of this trap.

The EU's stability and growth pact requires governments to maintain public deficits below 3% of gross domestic product.