Amended proposal for a Council Regulation (EC) on speeding up and clarifying the implementation of the excessive deficit procedure
Date: 1997-06-24
Institutions: European Commission
Subjects: Economic and Monetary Union, budget deficit, budget policy, economic convergence, economic growth

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels, 24.06.1997 
COM(97) 306  final 

96/ 0248 (CNS) 

Amended  proposal  for  a 

COUNCIL  REGULATION  (EX) 

ON SPEEDING  UP AND CLARIFYING  THE 

IMPLEMENTATION  OF THE EXCESSIVE DEFICIT  PROCEDURE 

(presented  by  the Commission  pursuant  to  Article  189 a (2) 
of the  EC-Treaty) 

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EXPLANATORY  MEMORANDUM 

On  16 October  1996, the Commission  adopted  in COM(96)496 final a proposal  for  a 
Council Regulation  on speeding up and clarifying the implementation of the excessive 
deficit procedure, this proposal was amended by the Commission on  19 March  1997 in 
COM(97)117 final to  include  inter alia, the  amendments  proposed  by  the  European 
Parliament,  under  the  consultation  procedure,  which  had  been  accepted  by  the 
Commission  and  the  agreements  reached  in  the  European  Council  in  Dublin  in 
December  1996.  The  changes  introduced  in  the  Commission  initial  proposal  were 
enough  to  justify  a  new  consultation  of  the  European  Parliament;  meanwhile,  the 
Council Working  Group on EMU made further  progress on the Commission  amended 
proposal which was endorsed by Ecofin  Minister in Noordwijk  on 4-5 April  1997. The 
draft  Regulation text  agreed  in Noordwijk  is acceptable for  the Commission,  with  the 
exception  of  draft  Article  16  because  aternative  versions  were  still  under 
consideration..  As a consequence, the European Parliament was de facto  consulted  on 
the  draft  regulation  agreed  in  Noordwijk.  (Council  doc.  6931/2/97  Rev2,  7  April 
1997). 

In  these  circumstances,  the  Commission  considers  that  some  of  the  amendments 
proposed  by the European  Parliament  in the new consultation  should be accepted  and 
will recommend  their acceptance to the Council with a view to final agreement  on the 
Stability and Growth Pact at the Amsterdam European Council in June. 

£ 

Amended  proposal  for  a 

COUNCIL  REGULATION  ŒO 

ON SPEEDLMG UP AND CLARIFYING  THE 

IMPLEMENTATION  OF THE EXCESSIVE  DEFICIT  PROCEDURE 

The Commission, having regard the amendments proposed by the European Parliament  to 
the  document  6931/2/97-C4-0182/97-96/0248  (CNS),  has  accepted 
the  following 
amendments: 

•  Recital 3 now reads: 

(3)  Whereas,  in  the  Resolution  of  the  European 
Council  of  17  June  1997,  the  European  Council,  in 
accordance  with  Article  D  of  the  Treaty,  has  given 
firm  political  guidelines  in  order  to  implement  the 
Stability  and  Growth  Pact  in  a  strict  and  timely 
manner; 

•  Recital 7 now reads: 

to 

to 

adherence 

(7)  Whereas 
the  medium-term 
objective  of  budgetary  positions  close  to  balance  or 
in surplus to which all Member  States are  committed 
the  appropriate 
the  creation  of 
contributes 
conditions for price stability and for  sustained  growth 
conducive  to  employment  creation  in  all  Member 
States  and  will  allow  them  to  deal  with  normal 
cyclical  fluctuations  while  keeping  the  government 
deficit within the 3 percent of GDP reference value; 

Article 12(2): 

2.  Each  following  year,  until  the  decision  on  the 
existence  of  an  excessive  deficit  is  abrogated,  the 
the  participating 
Council  shall  assess  whether 
Member State concerned  has taken effective  action in 
response  to  the  Council  notice  in  accordance  with 
Article  104c(9).  In  this  annual  assessment 
the 
Council  shall  decide,  in  accordance  with  Article 
104(c)(ll),  and  without  prejudice  to  Article  13  of 
this  regulation,  to  intensify  the  sanctions,  unless  the 
participating  Member  State  concerned  has  complied 
with  the  Council  notice.  If  an  additional  deposit  is 
decided,  it  shall  be  equal  to  one  tenth  of  the 
difference  between  the  deficit  as  a  percentage  of 
GDP  in  the  preceding  year  and  the  3%  of  GDP 
reference value. 

3 

ISSN 0254-1475 

COM(97) 306 final 

DOCUMENTS 

EN 

01 

Catalogue number  :  CB-C0-97-293-EN-C 

ISBN 92-78-21476-0 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg