98/314/EC: Council Decision of 1 May 1998 abrogating the Decision on the existence of an excessive deficit for Sweden
Date: 1998-05-01
Institutions: Council of the European Union
Subjects: Sweden, budget deficit, gross domestic product, public debt

11. 5. 98

EN

Official Journal of the European Communities

L 139/19

COUNCIL DECISION

of 1 May 1998

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

(98/314/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 Sweden; whereas, in accordance with Article
104c(7), the Council made recommendations to Sweden
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 Sweden before 1 March 1998 in accordance
with Regulation (EC) No 3605/93, the following conclu-
sions are warranted:

The government deficit in Sweden has been reduced very
sharply since 1993 and reached 0,8 % of GDP in 1997,
which is well below the Treaty reference value. A surplus
of 0,5 % of GDP is forecast for 1998. According to the
April 1998 review of the convergence programme for
Sweden, the government accounts are projected to show a
surplus of 3,5 % of GDP in 2001.

The government debt ratio peaked in 1994 at 79,0 % of
GDP and since then has declined every year to reach
76,6 % in 1997; the debt ratio is expected to decline
further in 1998 and projected to continue declining in the
following years in the April 1998 review of the Swedish
convergence programme and reach 62,9 % of GDP in
2001.

The deficit was well below the Treaty reference value in
1997 and the budget is expected to be in surplus in 1998
and to show an increasing surplus in the medium term;
the debt ratio has been diminishing in the last three years
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 Sweden has been corrected.

Article 2

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

Article 3

This Decision is addressed to the Kingdom of Sweden.

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