98/310/EC: Council Decision of 1 May 1998 abrogating the Decision on the existence of an excessive deficit for France
Date: 1998-05-01
Institutions: Council of the European Union
Subjects: France, budget deficit, gross domestic product, public debt

L 139/14

EN

Official Journal of the European Communities

11. 5. 98

COUNCIL DECISION

of 1 May 1998

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

(98/310/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 France; whereas,
in accordance with
Article 104c(7), the Council made recommendations to
France with a view to bringing the excessive deficit situa-
tion 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 France before 1 March 1998 in accordance

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

Since 1994, the government deficit in France has declined
significantly and in 1997 it reached 3,0 % of GDP, which
is equal to the Treaty reference value; a further small
decline in the deficit to 2,9 % of GDP is forecast for 1998
and the government plans to reduce the deficit further to
2,3 % of GDP in 1999.

The government debt ratio has been rising and reached
58,0 % of GDP in 1997 but it has never exceeded the
60 % of GDP Treaty reference value.

The deficit was equal to the reference value in 1997 and is
expected to fall below it in 1998; the government debt
ratio remains below the Treaty reference value,

HAS ADOPTED THIS DECISION:

Article 1

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

Article 2

The Council Decision of 26 September 1994 on the ex-
istence of an excessive deficit in France is hereby ab-
rogated.

Article 3

This Decision is addressed to the French Republic.

Done at Brussels, 1 May 1998.

For the Council

The President

G. BROWN

(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.