98/312/EC: Council Decision of 1 May 1998 abrogating the Decision on the existence of an excessive deficit for Spain
Date: 1998-05-01
Institutions: Council of the European Union
Subjects: Spain, budget deficit, gross domestic product, public debt

11. 5. 98

EN

Official Journal of the European Communities

L 139/17

COUNCIL DECISION

of 1 May 1998

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

(98/312/EC)

in Spain has been declining
The government deficit
significantly since 1995 and in 1997 reached 2,6 % of
GDP, which is below the Treaty reference value. A further
reduction to 2,2 % of GDP is
for 1998.
According to the 1997 convergence programme for Spain,
the government deficit is projected to decline further to
1,6 % of GDP in 2000.

forecast

The government debt ratio peaked at 70,1 % of GDP in
1996 and then declined to 68,8 % in 1997. A further
decline is expected for 1998 and projected to continue in
the
Spanish convergence
in the
programme.

following

years

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 debt ratio is currently
diminishing and is expected to continue declining in
coming years,

HAS ADOPTED THIS DECISION:

Article 1

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

Article 2

The Council Decision of 26 September 1994 on the exis-
tence of an excessive deficit in Spain is hereby abrogated.

Article 3

This Decision is addressed to the Kingdom of Spain.

Done at Brussels, 1 May 1998.

For the Council

The President

G. BROWN

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
in accordance with
deficit existed in Spain; whereas,
Article 104c(7), the Council made recommendations to
Spain with a view to bringing the excessive deficit situ-
ation 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 Spain before 1 March 1998 in accordance
with Regulation (EC) No 3605/93, the following conclu-
sions are warranted:

(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.