WRITTEN QUESTION No. 1320/98 by José GARCÍA-MARGALLO Y MARFIL to the Commission. EURO 1999
Date: 1998-04-29
Institutions: European Parliament, Provisional data
Subjects: Economic and Monetary Union, Portugal, budget deficit, budget policy, budgetary discipline (EU), economic convergence, third stage of EMU

19. 11. 98

EN

Official Journal of the European Communities

C 354/93

(98/C 354/148)

WRITTEN QUESTION E-1320/98

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 Portugal 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, Portugal had a general government deficit of 3.0% of gross domestic product (GDP) and in 1993 the
deficit was 6.1% of GDP. This situation led to a Council decision on 26 September 1994 on the existence of an
excessive  deficit  in  Portugal  (Article  104c  (6)  of  the  EC  Treaty).  In  the  period  covered  by  the  Honourable
Member(cid:146)s question, i.e. 1992 to 1997, Portugal 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 of the EC Treaty 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 354/149)

WRITTEN QUESTION E-1325/98

by Giuseppe Rauti (NI) to the Commission

(29 April 1998)

Subject: EU foreign and defence policy and enlargement

What is the Commission(cid:146)s opinion on a fundamental problem that is emerging as the enlargement process gets
under way.

The fact that there are a further eleven applicant countries is common knowledge, less well-known is that with
their 100 million inhabitants they will contribute to the Union a GDP more or less equal to that of Belgium, the
Netherlands and Luxembourg.

All experts predict that, as a result, for the next twenty years at least, the enlarging European Union will have to
devote all its efforts to solving the major problems arising from this divergence, especially in the economy, trade,
social legislation and agricultural policy.