98/309/EC: Council Decision of 1 May 1998 abrogating the Decision on the existence of an excessive deficit for Austria
Date: 1998-05-01
Institutions: Council of the European Union
Subjects: Austria, budget deficit, gross domestic product, public debt

11. 5. 98

EN

Official Journal of the European Communities

L 139/13

COUNCIL DECISION

of 1 May 1998

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

(98/309/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 10 July 1995 that an excessive deficit
existed in Austria; whereas, in accordance with Article
104c(7), the Council made recommendations to Austria
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 Austria before 1 March 1998 in accordance

with Regulation (EC) No 3605/93, the following conclu-
sions are warranted:

The government deficit in Austria has been declining
since 1995 and reached 2,5 % of GDP in 1997, which is
below the Treaty reference value; a further reduction to
2,3 % of GDP is forecast for 1998. According to the 1997
update of the convergence programme for Austria, the
deficit is projected to decline to 1,9 % of GDP in 2000.

The government debt ratio peaked in 1996 at 69,5 % of
GDP and then declined to 66,1 % in 1997. A further
decline is expected for 1998 and projected to continue in
the following years in the Austrian updated convergence
programme.

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 Austria has been corrected.

Article 2

The Council Decision of 10 July 1995 on the existence of
an excessive deficit in Austria is hereby abrogated.

Article 3

This Decision is addressed to the Republic of Austria.

Done at Brussels, 1 May 1998.

For the Council

The President

G. BROWN

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

1996 and 15 September 1997.

recommendations of 24 July 1995, 16 September