Bulgaria has failed to fulfill four of the five eurozone entry requirements and has not showed clear signs it would manage to overcome its excessive budget deficit in 2010, the European Commission (EC) said in its convergence report. Because of the country’s budget deficits of 3.9% for 2009, exceeding the 3% of GDP limit, the Commission has set Bulgaria under an excessive deficit procedure to ensure that they swiftly rein in government spending. The EC said in the report that Bulgaria’s excessive deficit is temporary and results from the challenging economic conditions and predicted Bulgaria could bring it back within the 3% cap by the end of this year. Alongside inflation, Bulgaria has also failed to meet other criteria regarding interest rates and capacity for a steady fulfillment of the eurozone criteria for entering the ERM II.