2005/183/EC: Council Decision of 5 July 2004 on the existence of an excessive deficit in Poland
Date: 2004-07-05
Institutions: Council of the European Union
Subjects: Poland, budget deficit, public finance, stability pact

L 62/18

EN

Official Journal of the European Union

9.3.2005

COUNCIL DECISION

of 5 July 2004

on the existence of an excessive deficit in Poland

(2005/183/EC)

Article 104(6) of the Treaty lays down that the Council
should consider any observations which the Member
State concerned may wish to make before deciding,
after an overall assessment, whether an excessive deficit
exists.

to

the

assessment

leads
the general government deficit

following
overall
The
conclusions:
reached
4,1 % of GDP in 2003 in Poland, above the 3 % of
GDP Treaty reference value. The excess of the general
government deficit over
the reference value did not
result from an unusual event outside the control of the
Polish authorities, nor was it
the result of a severe
economic downturn,
in the sense of the Stability and
Growth Pact. The general government deficit is likely
to remain above 3 % of GDP in 2004.
In particular,
according to the Commission Spring 2004 forecasts,
the deficit is projected to reach 6 % of GDP in 2004,
while the convergence programme of Poland expects a
deficit of 5,7 % of GDP. The debt ratio, which was 45,4 %
is likely to remain below the 60 % of GDP
in 2003,
Treaty reference value in 2004. The deficit and the
debt
the
figures will have to be adjusted upward if
open pension funds are excluded from the general
government sector following the Eurostat decision on
the classification of the funded pension schemes,

HAS ADOPTED THIS DECISON:

Article 1

From an overall assessment it follows that an excessive deficit
exists in Poland.

Article 2

This decision is addressed to the Republic of Poland.

Done at Brussels, 5 July 2004.

For the Council
The President

G. ZALM

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Article 104(6) thereof,

establishing the European

Having regard to the recommendation from the Commission,

Having regard to the observations made by Poland,

(5)

(6)

Whereas:

(1)

(2)

(3)

(4)

According to Article 104 of the Treaty Member States
are to avoid excessive government deficits; this applies
also to Member States with a derogation, the case of all
countries that
joined the European Union on 1 May
2004.

sound

government

The Stability and Growth Pact is based on the objective
of
of
strengthening the conditions for price stability and for
strong sustainable growth conducive to employment
creation.

a means

finances

as

The
excessive deficit procedure under Article 104
provides for a decision on the existence of an excessive
deficit and the Protocol on the excessive deficit procedure
annexed to the Treaty sets out further provisions relating
to the implementation of the excessive deficit procedure.
Council Regulation (EC) No 3605/93 of 22 November
1993 on the application of the Protocol on the excessive
deficit procedure annexed to the Treaty establishing the
European Community (1),
lays down detailed rules and
definitions for the application of the provision of the
said Protocol.

Article 104(5) of the Treaty requires the Commission to
address an opinion to the Council
if the Commission
considers that an excessive deficit in a Member State
exists or may occur. Having examined all
relevant
factors taken into account in its report in accordance
with Article 104(3) and having regard to the opinion
of the Economic and Financial Committee in accordance
with Article 104(4), the Commission concluded in its
opinion of 24 June 2004 that there exists an excessive
deficit in Poland.

(1) OJ L 332, 31.12.1993, p. 7. Regulation as last amended by
Commission Regulation (EC) No 351/2002 (OJ L 55, 26.2.2002,
p. 23).