1993R3605 — EN — 01.01.2000 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC)No 3605/93
of 22 November 1993
on the application of the Protocol on the excessive deficit procedure annexed to the Treaty
establishing the European Community
(OJ L 332, 31.12.1993, p. 7)
Amended by:
Official Journal
No page date
►M1 Council Regulation (EC) No 475/2000 of 28 February 2000 L 58 1 3.3.2000
1993R3605 — EN — 01.01.2000 — 001.001 — 2
▼B
COUNCIL REGULATION (EC)No 3605/93
of 22 November 1993
on the application of the Protocol on the excessive deficit procedure
annexed to the Treaty establishing the European Community
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular the third subparagraph of Article 104c (14) thereof,
Having regard to the proposal from the Commission (
1),
Having regard to the opinion of the European Parliament (2),
Whereas the definitions of ‘government', ‘deficit' and ‘investment' are
laid down in the Protocol on the excessive deficit procedure by refer-ence to the European System of Integrated Economic Accounts(ESA) (
3); whereas precise definitions referring to the classification
codes of ESA are required; whereas these definitions may be subject torevision in the context of the necessary harmonization of nationalstatistics or for other reasons; whereas any revision of ESA will bedecided by the Council in accordance with the rules on competence andprocedure laid down in the Treaty;
Whereas the definition of ‘debt' laid down in the Protocol on the
excessive deficit procedure needs to be amplified by a reference to theclassification codes of ESA;
Whereas Council Directive 89/130/EEC, Euratom of 13 February 1989
on the harmonization of the compilation of gross national product atmarketprices (
4) provides an adequate, detailed definition of gross
domest ic productatmarketprices;
Whereas, pursuant to the terms of the Protocol on the excessive deficit
procedure, the Commission is required to provide the statistical data tobe used in that procedure;
Whereas detailed rules are required to organize the prompt and regular
reporting by the Member States to the Commission of their planned andactual deficits and of the levels of their debt;
Whereas, pursuant to Article 104c (2) and (3) of the Treaty, the
Commission is to monitor the development of the budgetary situationand of the stock of government debt in the Member States and toexamine compliance with budgetary discipline on the basis of criteriarelating to government deficit and government debt; whereas, if aMember State does not fulfil the requirements under one or bothcriteria, the Commission must take into account all relevant factors;whereas the Commission has to examine whether there is a risk of anexcessive deficit in a Member State,
(1) OJ No C 324, 1. 12. 1993, p. 8; and
OJ No C 340, 17. 12. 1993, p. 8.
(2) OJ No C 329, 6. 12. 1993.
(3) Statistical Office of the European Communities, European System of Inte-
grated Economic Accounts (ESA) , second edition.
(4) OJ No L 49, 21. 2. 1989, p. 26.
1993R3605 — EN — 01.01.2000 — 001.001 — 3
▼B
HAS ADOPTED THIS REGULATION:
SECTION 1
Definitions
▼M1
Article 1
1. For the purposes of the Protocol on the excessive deficit procedure
and of this Regulation, the terms given in the following paragraphs aredefined according to the European system of national and regionalaccounts in the Community (hereinafter referred to as ‘ESA 95'),adopted by Regulation (EC) No 2223/96 (
1). The codes in brackets refer
to ESA 95.
2. ‘Government' means the sector of ‘general government' (S.13),
that is ‘central government'(S.1311), ‘state government'(S.1312), ‘localgovernment' (S.1313) and ‘social security funds' (S.1314), to the exclu-sion of commercial operations, as defined in ESA 95.
The exclusion of commercial operations means that the sector of
‘general government'(S.13) comprises only institutional units producingnon-market services as their main activity.
3. ‘Governmentdeficit(surplus)' means t he netborrowing (net
lending) (B.9) of the sector of ‘general government' (S.13), as definedin ESA 95. The interest comprised in the government deficit is theinterest (D.41), as defined in ESA 95.
4. ‘Government investment' means the gross fixed capital formation
(P.51) of the sector of ‘general government' (S.13), as defined in ESA95.
5. ‘Government debt' means the total gross debt at nominal value
outstanding at the end of the year of the sector of ‘general government'(S.13), with the exception of those liabilities the corresponding financialassets of which are held by the sector of ‘general government' (S.13).
Government debt is constituted by the liabilities of general government
in the following categories: currency and deposits (AF.2); securitiesother than shares, excluding financial derivatives (AF.33) and loans(AF.4), as defined in ESA 95.
The nominal value of a liability outstanding at the end of the year is the
face value.
The nominal value of an index-linked liability corresponds to its face
value adjusted by the index-related change in the value of the principalaccrued to the end of the year.
Liabilities denominated in a foreign currency, or exchanged from one
foreign currency through contractual agreements to one or more otherforeign currencies shall be converted into the other foreign currencies atthe rate agreed on in those contracts and shall be converted into thenational currency on the basis of the representative market exchangerate prevailing on the last working day of each year.
Liabilities denominated in the national currency and exchanged through
contractual agreements to a foreign currency shall be converted into theforeign currency at the rate agreed on in those contracts and shall beconverted into the national currency on the basis of the representativemarket exchange rate prevailing on the last working day of each year.
Liabilities denominated in a foreign currency and exchanged through
contractual agreements to the national currency shall be converted intothe national currency at the rate agreed on in those contracts.
(1) Council Regulation (EC) No 2223/96 of 25 June 1996 on the European
system of national and regional accounts in the Community (OJ L 310,30.11.1996, p. 1).
1993R3605 — EN — 01.01.2000 — 001.001 — 4
▼M1
Article 2
For the purposes of the Protocol on the excessive deficit procedure and
of this Regulation, gross domestic product means gross domesticproductatcurrentmarketprices (GDP mp) (B.1*g), as defined in ESA95.
▼
B
Article 3
1. Planned government deficit figures mean the figures established
for the current year by the Member States consistent with the mostrecent decisions of their budgetary authorities.
2. Act ual governmentdeficitand governmentdebtlevel figures mean
estimated, provisional, half-finalized or final results for a past year.
SECTION 2
Rules and coverage of reporting
Article 4
1. As from the beginning of 1994, Member States shall report to the
Commission their planned and actual government deficits and levels ofgovernment debt twice a year, the first time before 1 March of thecurrent year (year n) and the second time before 1 September of year n.
2. Before 1 March of year n, Member States:
— shall report to the Commission their planned government deficit for
year n, an up-to-date estimate of their actual government deficit foryear n-1 and their actual government deficits for years n-2, n-3 andn-4,
— shall simultaneously provide the Commission for years n, n-1 and
n-2 with their corresponding public accounts budget deficitsaccording to the definition which is given most prominence nation-ally and with the figures which explain the transition between thispublic accounts budget deficit and their government deficit. Thefigures explaining this transition which are provided to the Commis-sion shall include, in particular, the figures for net borrowing of the►
M1subsectors S.1311, S.1312, S.1313 and S.1314 ◄,
— shall report to the Commission their estimate of the level of actual
governmentdebtatt he end of year n-1 and t heir levels of act ualgovernmentdebtfor years n-2, n-3 and n-4,
— shall simultaneously provide the Commission for years n-1 and n-2
with the figures which explain the contributions of their governmentdeficit and the other relevant factors contributing to the variation inthe level of their government debt.
3. Before 1 September of year n, Member States shall report to the
Commission:
— their updated planned government deficit for year n and their actual
governmentdeficit s for years n-1, n-2, n-3 and n-4 and shall complywith the requirements of the second indent of paragraph 2,
— their actual level of government debt for years n-1, n-2, n-3 and n-4,
and shall comply with the requirements of the fourth indent ofparagraph 2.
4. The figures for the planned government deficit reported to the
Commission in accordance with paragraphs 2 and 3 shall be expressedin national currency and in budget years.
The figures for act ual governmentdeficitand act ual governmentdebt
level reported to the Commission in accordance with paragraphs 2 and 3shall be expressed in national currency and in calendar years, with theexception of the up-to-date estimates for year n-1, which may beexpressed in budgetyears.
Where the budget year differs from the calendar year, Member States
shall also report to the Commission their figures for actual government
1993R3605 — EN — 01.01.2000 — 001.001 — 5
▼B
deficit and actual government debt level in budget years for the twobudgetyears preceding t he currentbudgetyear.
Article 5
Member States shall, in accordance with the procedure laid down in
Article 4 (1), (2) and (3), provide the Commission with the figures fortheir government investment expenditure ►
M1and interest expendi-
ture (consolidated) ◄.
Article 6
Member States shall provide the Commission with a forecast of their
gross domestic product for year n and the actual amount of their grossdomestic product for years n-1, n-2, n-3 and n-4, under the same timingconditions as those indicated in Article 4 (1).
▼
M1
Article 7
In the event of a revision of ESA 95 or of an amendment to its
methodology to be decided on by the Council or the Commission inaccordance with the rules on competence and procedure laid down inthe Treaty and in Regulation (EC) No 2223/96, the Commission shallintroduce the new references to ESA 95 into Articles 1, 2 and 4.
▼
B
Article 8
This Regulation shall enter into force on 1 January 1994.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.