WRITTEN QUESTION No. 1310/98 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, Germany, budget deficit, budgetary equilibrium, coordination of EMU policies, currency adjustment, economic convergence, euro, gross domestic product

21. 10. 98

EN

Official Journal of the European Communities

C 323/123

evidence that the fanaticism cultivated by the Turkish authorities is bearing fruit, while they do nothing to protect
the monuments of the minorities who have the courage to live on their territory.

Is the Commission familiar with this matter and what measures will it take to prompt Turkey into action and
punish those guilty of this outrage?

Answer given by Mr Van den Broek on behalf of the Commission

(25 May 1998)

The  Commission  would  refer  the  Honourable  Member  to  the  reply  it  gave  to  Oral  Question  H-425/98  by
Mr Papakyriazis during question time at Parliament(cid:146)s May 1998 part-session (1).

(1)  Debates of the Parliament (May 1998).

(98/C 323/189)

WRITTEN QUESTION E-1310/98

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 Germany 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)  and
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, Germany had a general government deficit of 2.6% of gross domestic product (GDP), and in 1993 the
deficit was 3.2% of GDP. This situation led to a Council decision of 26 September 1994 on the existence of an
excessive deficit in Germany (Article 104c(6) of the EC Treaty). The decision was abrogated in July 1995 › with
the 1994 deficit having fallen to 2.4% › but reintroduced in June 1996, as the 1995 deficit had risen to 3.3%. In
the period covered by the Honourable Member(cid:146)s question, i.e. 1992 to 1997, Germany budgetary policy was
mainly geared towards convergence, i.e. to correct the excessive deficit situation and thus to meet the 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.