CELEX: 52014PC0434
Language: en
Date: 2014-06-02 00:00:00
Title: Recommendation for a COUNCIL DECISION abrogating Decision 2010/407/EU on the existence of an excessive deficit in Denmark

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		52014PC0434
		
			Recommendation for a COUNCIL DECISION abrogating Decision 2010/407/EU on the existence of an excessive deficit in Denmark /* COM/2014/0434 final */
			
				
		
		
			
			   	Recommendation for a
COUNCIL DECISION
abrogating Decision 2010/407/EU on the
existence of an excessive deficit in Denmark
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 126(12)
thereof,
Having regard to the recommendation from
the Commission,
Whereas: 
(1)       By Council Decision 2010/407/EU
of 13 July 2010[1],
following a recommendation from the Commission, it was decided that an
excessive deficit existed in Denmark. The Council noted that according to the
data notified by the Danish authorities in April 2010, the general government
deficit planned for 2010 was 5.4% of GDP, thus above the 3% of GDP Treaty
reference value. The general government gross debt was expected at 45.1% of GDP
in 2010, well below the 60% of GDP Treaty reference value[2].
(2)       On 13 July 2010, in
accordance with Article 126(7) TFEU and Article 3(4) of Council Regulation (EC)
No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of
the excessive deficit procedure[3],
the Council, based on a recommendation from the Commission, addressed a
recommendation to Denmark with a view to bringing the excessive deficit
situation to an end by 2013 at the latest. The recommendation was made public.
(3)       In accordance with Article
4 of the Protocol on the excessive deficit procedure annexed to the Treaties,
the Commission provides the data for the implementation of the procedure. As
part of the application of this Protocol, Member States are to notify data on
government deficits and debt and other associated variables twice a year,
namely before 1 April and before 1 October, in accordance with Article 3 of
Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the
Protocol (no 12) on the excessive deficit procedure annexed to the Treaty
establishing the European Community[4].

(4)       When considering whether a
decision on the existence of an excessive deficit should be abrogated, the
Council should take a decision on the basis of notified data. Moreover, a
decision on the existence of an excessive deficit should be abrogated only if
the Commission forecasts indicate that the deficit will not exceed the 3% of
GDP reference value over the forecast horizon[5].
(5)       Based on data provided by
the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009
following the notification by Denmark before 1 April 2014 and on the
Commission 2014 spring forecast, the following conclusions are warranted:
–              
The general government deficit stayed within the
3% of GDP reference value in the period 2010-2013, except in 2012, when the
balance was negatively affected by a one-off reimbursement related to a pension
reform in 2011. The one-off reimbursement is estimated to have weakened the
fiscal balance by 1.6% of GDP in 2012. The general government deficit amounted to
2.5% of GDP in 2010, 1.9% of GDP in 2011, 3.8% of GDP in 2012 and 0.8% of GDP
in 2013. The improvement of the fiscal balance was driven by consolidation
measures both on the revenue and expenditure side, in particular through
restricted growth in public consumption. 
–              
Denmark’s 2014 convergence
programme projects a general government deficit of 1.3% of GDP in 2014 and 2.9%
of GDP in 2015. In 2013-2014, public finances are affected by one-off revenues
coming from the restructuring of existing capital pensions, giving the
opportunity to pay off tax liability of future capital pensions at a favourable
rate. This measure is estimated to boost the fiscal balance by close to 1.8% of
GDP in both years. In 2015, this measure will have no impact, leading to an
expected increase in the public finance deficit. The Commission 2014 spring forecast
projects the general government deficit to 1.2% of GDP in 2014 and to 2.7% of
GDP in 2015. Thus, the deficit is set to remain below the reference value of 3%
of GDP over the forecast horizon. 
–              
After having improved by 0.7% of GDP in cumulative
terms between 2011 and 2013, the structural balance, i.e. adjusted for the
economic cycle and net of one‑off and other temporary measures, is
forecast to deteriorate by 0.8% of GDP in 2014 (to -0.2% of GDP) and by further
0.3% of GDP in 2015, based on a no‑policy‑change assumption.
–              
The Commission 2014 spring forecast
projects the general government gross debt to decrease to 43.5% of GDP in 2014 and
to increase to 44.9% of GDP in 2015, below the 60% of GDP Treaty reference
value.
(6)       The Council recalls that,
starting in 2014, which is the year following the correction of the excessive
deficit, Denmark is subject to the preventive arm of the Stability and Growth Pact
and should maintain its structural balance at or above its medium-term
objective.
(7)       In accordance with Article
126(12) of the Treaty, a Council Decision on the existence of an excessive
deficit is to be abrogated when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected. 
(8)       In the view of the
Council, the excessive deficit in Denmark has been corrected and Decision 2010/407/EU
should therefore be abrogated,
HAS ADOPTED THIS DECISION:
Article 1
From an overall assessment it follows that
the excessive deficit situation in Denmark has been corrected.
Article 2
Decision 2010/407/EU is hereby abrogated.
Article 3
This Decision is addressed to the Kingdom of Denmark.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 189, 22.7.2010, p. 15.
[2]               The general government deficit for 2010 has subsequently
been revised to 2.5% of GDP, while the general government gross debt has been
revised to 42.8% of GDP.
[3]               OJ L 209, 2.8.1997, p. 6. 
[4]               OJ L 145, 10.6.2009, p. 1. 
[5]               In line with the “Specifications on the
implementation of the Stability and Growth Pact and Guidelines on the format
and content of Stability and Convergence Programmes”, of 3 September2012. See: 
http://ec.europa.eu/economy_finance/economic_governance/sgp/pdf/coc/code_of_conduct_en.pdf