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The objective of the budgetary strategy outlined in the 2014 Convergence Programme is to correct the excessive deficit by 2016, whilst at the same time moving back to a path of sustainable economic growth. This is projected to be achieved by a continuous reduction in the deficit from 4,9 % of GDP in 2013 to below 3 % of GDP by 2016, the deadline for the correction of the excessive deficit. The Convergence Programme projects that government debt will peak at around 72 % of GDP in 2014, slightly drop in the following year and level off thereafter. The macroeconomic scenario underpinning the budgetary projections in the Convergence Programme is optimistic over the entire programme period. According to the Convergence Programme scenario, GDP would stagnate in 2014, whilst moderate growth of 1,2 % is projected in 2015; against a decline of 0,6 % and growth of 0,7 %, respectively, in the Commission services 2014 Spring Forecast. The Convergence Programme's budgetary forecast figures deviate from the standards of the European System of National and Regional Accounts (ESA), giving rise to inconsistency with past data and the macroeconomic scenario and hindering an appropriate comparison with the Commission services 2014 Spring forecast. Moreover, the Convergence Programme does not provide a sufficient level of detail on the consolidation measures for 2015 and 2016, in particular on the expenditure side. According to the Commission services 2014 Spring forecast, the headline balance is expected to reach 3,8 % and 3,1 % of GDP in 2014 and 2015 respectively. After the necessary adjustment to make these projections comparable to the targets set in the context of the Excessive Deficit Procedure (i.e. excluding the impact of the transfer of second pillar pension assets), the Commission projection for the deficit in 2014 would be 4,6 % of GDP and 3,8 % in 2015. As the Convergence Programme constitutes the first report on the action taken by the authorities following the opening of the Excessive Deficit Procedure on 28 January 2014, the Commission assessed the action taken by Croatia in a Communication published on 2 June 2014. In particular, the headline target is projected to be met in 2014, while the deficit is expected to be somewhat above target in 2015. The improvement in the structural government balance falls marginally short of what is required both in 2014 and 2015. Finally, while the change in the adjusted structural balance is below the recommended effort, the effort measured by the underlying amount of discretionary measures is estimated to be delivered both in 2014 and 2015. In order to reduce the negative impact on growth and enhance the sustainability of the consolidation, greater attention to the quality of the measures and a transition to expenditure‐based measures are warranted. Based on its assessment of the Convergence Programme and the Commission forecast, pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that, while Croatia took effective action by 30 April 2014 to correct its excessive deficit as recommended, additional efforts are needed in order to comply with the recommendation under the Excessive Deficit Procedure to correct the excessive deficit by 2016 and ensure the credibility of the correction.