COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(91) 265 final 
Brussels, 5 July 1991 
AMENDMENTS TO THE ANNUAL ECONOMIC REPORT 1990-91 
(presented by the Commission) 
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AMENDMENTS TO THE ANNUAL ECONOMIC REPORT 1990-91 
This document presents: 
i) the original text and 
ii) the new text resulting from the amendments 
on which there is an agreement after bilateral 
contacts with the respective delegations. 
Z 
AMENDMENTS TO THE ANNUAL BOONQMIC REPORT 1990/1991 
N.B. Italics denote new or modified text; 
[...] denotes that text has been deleted 
ORIGINAL. TEXT NEW TEXT 
1. Page 6, last paragraph» 
Despite these large exchange rate 
fluctuations and the liberalisation 
of capital movements, the EMS has not 
experienced major tensions, although 
positions of the different currencies 
within the ERM changed over time and 
interest rate differentials were 
gradually reduced. Despite these large exchange rate 
fluctuations and the liberalisation of 
capital movements, the EMS has [] veil 
resisted tensions, even when positions 
of the different currencies within the 
ERM changed over time []. Although 
interest rate differentials were 
gradually reduced, the persistence of 
high nominal rates in certain countries 
has repeatedly led in 1990 and early 
1991 to difficulties in the daily 
management of the EMS. 
2. Page 7, 2nd paragraph, last sentence: 
The increase is mainly due to high 
nominal increases in compensation per 
head, above 7% per annum in 1990 and 
1991 in the Community on average 
(table 3). For some countries, the increase in 
real unit labour costs, is mainly due 
to high nominal increases in 
compensation per head, above 7% per 
annum in 1990 and 1991 in the Community 
on average (table 3). 
3. Page 11, 3rd paragraph, last sentence» 
The cost of unification would swell 
the fiscal deficit from a small 
surplus in 1989 to a deficit of 
around 2.2% of GDP in 1990 and around 
4.7% in 1991 despite sizable 
increases in taxes. The cost of unification would swell the 
fiscal deficit from a small surplus in 
1989 to a deficit of around 2.2% of GDP 
in 1990 and around 4.7% in 1991 (Vest 
German deficit, including the deficit 
of East German territorial authorities 
and expenditure by the Federal 
Government in East Germany, in relation 
to West German GDP) despite sizable 
increases in taxes. 
? 
AMENDMENTS TO THE ANNUAL ECONOMIC REPORT 1990/1991 
N.B. Italics denote new or modified text; 
[...] denotes that text has been deleted 
ORIGINAL TEXT NEW TEXT 
*- Page 24, 1st paragraph» 
^he strengthening of economic and 
social cohesion ... and has expanded 
±he growth potential in the Community 
as a whole. The gap remains sizable 
^though, and will require a long-term 
effort of catching-up. The strengthening of economic and 
social cohesion .... and has expanded 
the growth potential in the Community 
as a whole. This strengthening of 
cohesion vas assisted by the favourable 
pace of Community grovth during the 
period/ hovever, in some of those 
countries the relatively more rapid 
pace of grovth led to important 
diaequilibria, the necessary correction 
of vhich could reverse to some extent 
the gains already made, particularly in 
a context of slov overall grovth in the 
Community» It has also to be borne in 
mind that even on assumptions of higher 
future Community grovth, the gap 
remains sizable [], and will require a 
long-term effort of catching-up. 
5. Page 31, line 10» 
This would result in limiting the 
public borrowing requirement to 4.7% 
of GDP in 1991 (table 6). Although 
the use ... This would result in limiting the 
public borrowing requirement to 4.7% of 
GDP in 1991 (table 6). An improvement 
in the deficit is expected in 1992 as a 
result of the measures taken on the 
revenue and expenditure side. Although 
the use .... 
6. Page 33, 3rd paragraph, 4th line» 
... does not present the Community 
with a convergence problem. The 
increase in the budget deficit in the 
united Kingdom, although partly 
attributable to the recession, 
nevertheless calls for attention. The 
general assessment ... does not present the Community with 
a convergence problem [...]. The UK, 
faced vith recession, is allowing a 
deterioration in its budgetary 
position, vhich results mainly from the 
working of the automatic stabilizers. A 
cautious policy stance is required, to 
maintain compliance vith its medium 
term objective of a balanced budget. 
This would ensure continued positive 
public saving in the medium-term. The 
general assessment ... 
h 
ISSN 0254-1475 
COM(91) 265 final 
DOCUMENTS 
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Catalogue number : CB-CO-91-302-EN-C 
ISBN 92-77-74117-1 
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