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The move, although largely symbolic, sends a new signal that
Greece's public finances are again under control, facilitating
the country's plans to tap markets after a successful issue of
bonds in July which ended a three-year exile.
EU fiscal rules oblige member states to keep their budget
deficits below 3 percent of their economic output or face
sanctions that could entail hefty fines, although so far no
country has received a financial penalty.
Greece had a 0.7 percent budget surplus in 2016, and is
projected to maintain its fiscal position within EU rules'
limits this year.
"In the light of this, the Council (of EU states) found that
Greece fulfils the conditions for closing the excessive deficit
procedure," the EU said in a note.
"After many years of severe difficulties, Greece's finances are
in much better shape. Today's decision is therefore welcome",
Estonia's finance minister Toomas Toniste said.
The EU states' decision confirmed a proposal by the EU executive
commission in July to end the disciplinary procedure for Greece.
The economics commissioner Pierre Moscovici said the decision
was "a recognition of the tremendous efforts and sacrifices the
Greek people have made to restore stability to their country’s
public finances."
But he stressed that Greece still needs to positively exit its
bailout program which ends in August after a third review of the
country's reforms by international creditors.
"There needs to be constructive cooperation between all
institutions and the Greek authorities to ensure a smooth and
swift conclusion of the third review, with no unnecessary
drama," Moscovici said.
(Reporting by Francesco Guarascio @fraguarascio; editing by
Philip Blenkinsop and Toby Chopra)
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