98/307/EC: Council Decision of 1 May 1998 abrogating the Decision on the existence of an excessive deficit for Belgium
Date: 1998-05-01
Institutions: Council of the European Union
Subjects: Belgium, budget deficit, gross domestic product, public debt

11. 5. 98

EN

Official Journal of the European Communities

L 139/9

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 1 May 1998

abrogating the Decision on the existence of an excessive deficit for Belgium

(98/307/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 104c(12) thereof,

Having regard to the recommendation from the Commis-
sion,

Whereas the second stage for achieving economic and
monetary union started on 1 January 1994; whereas
Article 109e(4) of the Treaty lays down that, in the second
stage, Member States shall endeavour to avoid excessive
government deficits;

Whereas there is an excessive deficit procedure which
provides for a decision on the existence of an excessive
deficit and, after the excessive deficit has been corrected,
for the abrogation of that decision; whereas, during the
second stage, the excessive deficit procedure is deter-
mined by Article 104c of the Treaty, excluding para-
graphs 1, 9 and 11; whereas the Protocol on the excessive
deficit procedure annexed to the Treaty sets out further
provisions relating to the implementation of the excessive
deficit procedure; whereas Regulation (EC) No 3605/93 (1)
lays down detailed rules and definitions for the applica-
tion of the said Protocol;

Whereas, following a recommendation from the Commis-
sion in accordance with Article 104c(6) of the Treaty, the
Council decided on 26 September 1994 that an excessive
deficit existed in Belgium; whereas, in accordance with

Article 104c(7), the Council made recommendations to
Belgium with a view to bringing the excessive deficit
situation to an end (2);

Whereas a Council Decision on the existence of an exces-
sive deficit is to be abrogated, in accordance with the
provisions of Article 104c(12) of the Treaty, to the extent
that the excessive deficit in the Member State concerned
has, in the view of the Council, been corrected;

Whereas, when abrogating the Decision, the Council is to
act on a recommendation from the Commission; whereas,
based on the data provided by the Commission after
reporting by Belgium before 1 March 1998 in accordance
with Regulation (EC) No 3605/93, the following conclu-
sions are warranted:

the government deficit

Since 1993,
in Belgium has
declined significantly and in 1997 it reached 2,1 % of
GDP, which is below the Treaty reference value. It is
forecast to decline to 1,7 % of GDP in 1998. According
to the 1997 convergence programme of Belgium, the
government deficit
is projected to decline further to
1,4 % of GDP in 2000.

The government debt ratio peaked in 1993 at 135,2 % of
GDP but has been declining every year since then to
122,2 % in 1997. A further decline is expected for 1998
and projected to continue in the following years in the
Belgian convergence programme.

(1) OJ L 332, 31. 12. 1993, p. 7.

(2) Council recommendations of 7 November 1994, 24 July 1995,

16 September 1996 and 15 September 1997.

L 139/10

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Official Journal of the European Communities

11. 5. 98

The reduction of the deficit and in particular the level
reached by the primary surplus, amounting to more than
5 % of GDP since 1994, have contributed to putting the
debt ratio on a downward path. Since the adoption of its
the Belgian government has
convergence programme,
reconfirmed its commitment to maintain the primary
surplus at
the level of some 6 % of GDP over the
medium term. This primary surplus is essential to main-
taining the debt ratio on its sustainable downward path.

The deficit was below the Treaty reference value in 1997
and is expected to remain so in 1998 and to decline
further in the medium term; the government debt ratio
has been decreasing in the last four years and is expected
to decline further in coming years,

HAS ADOPTED THIS DECISION:

Article 1

From an overall assessment it follows that the excessive
deficit situation in Belgium has been corrected.

Article 2

The Council Decision of 26 September 1994 on the ex-
istence of an excessive deficit in Belgium is hereby abro-
gated.

Article 3

This Decision is addressed to the Kingdom of Belgium.

Done at Brussels, 1 May 1998.

For the Council

The President

G. BROWN