WRITTEN QUESTION No. 1314/98 by José GARCÍA-MARGALLO Y MARFIL to the Commission. EURO 1999
Date: 1998-04-29
Institutions: European Parliament, Provisional data
Subjects: Community budget, Economic and Monetary Union, Finland, budget deficit, budgetary equilibrium, coordination of EMU policies, currency adjustment, economic convergence, euro, gross domestic product

C 323/124

EN

Official Journal of the European Communities

21. 10. 98

(98/C 323/190)

WRITTEN QUESTION E-1311/98

by Jose· Garc(cid:14)·a-Margallo y Marfil (PPE) to the Commission

(29 April 1998)

Subject: EURO 1999

As a result of the Pact for Stability and Growth adopted by the Amsterdam European Council in June 1997, the
Member States(cid:146) medium-term budgetary objective will be to achieve (cid:145)positions close to balance or in surplus(cid:146).
If the Member States continue their budgetary adjustments in subsequent years, their public finances will be in
the best position to tackle the budgetary consequences of a possible downturn in the economy.

But what does the Commission think would be the current situation in Austria if the Stability Pact had been
applied during the period 1992-1997?

Answer given by Mr de Silguy on behalf of the Commission

(2 June 1998)

The stability and growth pact is constituted by a resolution of the European Council of 7 June 1997 (1), Council
Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and
the surveillance and coordination of economic policies (2), and Council Regulation (EC) No 1467 of 7 July 1997
on speeding up and clarifying the implementation of the excessive deficit procedure (2). The pact aims at fiscal
discipline  in  the  economic  and  monetary  union  (EMU)  thus  creating  the  appropriate  stability  conditions  for
sustained growth. It provides a powerful system of incentives for a Member State not to incur an excessive deficit
and to correct it rapidly if such a situation should occur.

In 1992, Austria had a government deficit equal to 2% of gross domestic product (GDP), and in 1993 the deficit
was 4.2% of GDP. After Austria(cid:146)s accession to the Community in January 1995, the Council decided 10 July
1995 that an excessive deficit existed in Austria (Article 104c(6) of the EC Treaty). In the period covered by the
Honourable  Member(cid:146)s  question,  i.e.  1992  to  1997,  Austria  budgetary  policy  was  mainly  geared  towards
convergence,  i.e.  to  correct  the  excessive  deficit  situation  and  thus  to  meet  the  convergence  criteria  on  the
budgetary position. Moreover, paragraphs 9 and 11 of Article 104c, which deal with sanctions, did not apply
during stage two of EMU.

(1)  OJ C 236, 2.8.1997.
(2)  OJ L 209, 2.8.1997.

(98/C 323/191)

WRITTEN QUESTION E-1314/98

by Jose· Garc(cid:14)·a-Margallo y Marfil (PPE) to the Commission

(29 April 1998)

Subject: EURO 1999

As a result of the Pact for Stability and Growth adopted by the Amsterdam European Council in June 1997, the
Member States(cid:146) medium-term budgetary objective will be to achieve (cid:145)positions close to balance or in surplus(cid:146).
If the Member States continue their budgetary adjustments in subsequent years, their public finances will be in
the best position to tackle the budgetary consequences of a possible downturn in the economy.

But what does the Commission think would be the current situation in Finland if the Stability Pact had been
applied during the period 1992-1997?