CELEX: 51996PC0496(01)
Language: en
Date: 1996-10-16
Title: Proposal for a COUNCIL REGULATION (EC) on the strengthening of the surveillance and coordination of budgetary positions

Avis juridique important

|

51996PC0496(01)

Proposal for a COUNCIL REGULATION (EC) on the strengthening of the surveillance and coordination of budgetary positions  /* COM/96/0496 FINAL - SYN 96/0247 */  

Official Journal C 368 , 06/12/1996 P. 0009

Proposal for a Council Regulation (EC) on the strengthening of the surveillance and coordination of  budgetary positions (96/C  368/06) COM(96) 496 final - 96/0247(SYN)(Submitted by the  Commission on 18 October 1996) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 103  (5)  thereof, Having regard to the proposal from the Commission, In cooperation with the European Parliament, (1) Whereas the maintenance of sound budgetary positions in the Member States creates the  appropriate conditions for the sustained growth of output and employment; whereas budgetary  discipline will be required in the third stage of economic and monetary union to ensure monetary  stability; (2) Whereas national budgetary policies need to be set so as to create room for manoeuvre in  adapting to exceptional and cyclical disturbances and so as to avoid excessive deficits; (3) Whereas in the context of the single currency the closer coordination of budgetary and other  economic policies assumes more importance; (4) Whereas the reference value for the government deficit of 3  % of GDP specified in Article 1 of  Protocol No 5 on the excessive deficit procedure is to be seen as a ceiling in normal  circumstances; whereas, therefore, government budgets in the medium term should aim for positions  close to balance or in surplus, taking due account of differences in national characteristics; (5) Whereas the multilateral surveillance procedure of Article 103  (3) and (4) should be developed  to provide an early warning system, in which the Council would alert a Member State to the need to  take corrective action to prevent a government deficit becoming excessive; whereas this  multilateral surveillance procedure should continue to monitor the full range of economic  developments in each of the Member States and in the Community as well as the consistency of  economic policies with the broad guidelines referred to in Article 103  (2); (6) Whereas the present Regulation forms part of the stability pact for ensuring budgetary  discipline in stage three of economic and monetary union (EMU); whereas the pact includes two main  elements: (i) strengthening the surveillance and coordination of budgetary positions; and (ii)  speeding up and clarifying the implementation of the excessive deficit procedure; whereas the  second of these elements provides time limits on the implementation of the excessive deficit  procedure and a specification of the imposition of sanctions; (7) Whereas the rules for such a speeding up and clarifying of the excessive deficit procedure have  been laid down in Council Regulation [.  .  .]; (8) Whereas the Member States which will adopt the single currency shall have been found in  accordance with Article 109  (j) to have achieved a high degree of sustainable convergence and in  particular a sustainable government financial position; whereas the maintenance of sound budgetary  positions in these Member States will be required to ensure monetary stability and to create  appropriate conditions for the sustained growth of output and employment; whereas these Member  States are to be referred to as Member States without a derogation in accordance with Article 109   (k); (9) Whereas there is a need to build upon the useful experience gained during the first two stages  of economic and monetary union with convergence programmes as instruments for setting objectives  and providing a basis for monitoring; whereas it is important to place a requirement on Member  States without a derogation to submit medium-term budgetary programmes (to be called stability  programmes) and it is necessary to define the principal contents of such programmes; whereas it is  necessary to lay down time limits for the submission of stability programmes and their updates; (10) Whereas, in the interest of transparency and informed public debate, Member States without a  derogation should be required to make public their stability programmes; (11) Whereas there is a need to define rules for the examination of stability programmes by the  Council; (12) Whereas the monitoring of stability programmes should be carried out in the framework of  multilateral surveillance; whereas particular attention should be given to slippage from the  programme targets for the government surplus/deficit; whereas in order to prevent a serious  deterioration in the deficit position of a Member State without a derogation it would be  appropriate for the Council to recommend that the Member State take corrective action; whereas in  the event of persistent budgetary slippage the Council should consider it appropriate to reinforce  and make public its recommendation; (13) Whereas it will also be necessary to make similar rules covering the programmes and  surveillance of the other Member States, HAS ADOPTED THIS REGULATION: SECTION 1 Stability programmes Article 1 1.  Each Member State without a  derogation shall submit to the Council and Commission a 'stability programme`. 2.  A stability programme shall contain: (a) medium-term objective and adjustment path for the government surplus/deficit as a ratio of GDP;  expected path for the government debt ratio; (b) main assumptions about expected ecnonomic developments such as real GDP growth,  employment/unemployment, inflation, and other important economic variables; (c) description of budgetary measures being taken to achieve the objectives of the programme; (d) commitment to take additional measures when necessary to prevent slippage from targets. 3.  The information about paths for the government surplus/deficit ratio and debt ratio and the  main economic assumptions referred to in paragraph 2 (a) and (b) shall be on an annual basis and  shall cover, as well as the current and preceding year, at least the following three years. Article 2 1.  Stability programmes shall be submitted before 1 January 1999. Thereafter, updated  programmes shall be submitted each year, not later than two months after the presentation of annual  budget proposals by a Member State government to its national parliament. A Member State for which  an initial derogation is subsequently abrogated according to Article 109  (k)  (2), shall submit a  stability programme within six months of the decision on abrogation. 2.  Member States shall make public their stability programmes and updated programmes. SECTION 2 Surveillance of budgetary positions and early warning system Article 3 1.  Based on  assessments by the Commission and the Committee provided for in Article 109  (c), the Council shall  examine whether, having regard to specific national characteristics, the medium-term budget  objective in the stability programme is close to balance or in surplus, whether the economic  assumptions on which the programme is based are realistic and whether the measures being taken  and/or proposed are sufficient to achieve the targeted adjustment path towards the medium-term  objective. 2.  The Council shall make the examination of the stability programme referred to in paragraph 1  within at most two months of the submission of the programme. The Council, on a recommendation from  the Commission after consulting the Committee provided for in Article 109  (c), may endorse the  stability programme. Where the Council considers that the objectives and contents of a programme  should be strengthened, the Council, as provided for by Article 103  (4), shall in general make a  recommendation to the Member State concerned to adjust its programme. 3.  Updated stability programmes shall be examined by the Committee provided for in Article 109   (c) on the basis of assessments by the Commission; if necessary, updated programmes may also be  examined by the Council in accordance with the procedure of paragraphs 1 and 2. Article 4 1.  As part of the multilateral surveillance in accordance with Article 103  (3), the  Council shall monitor the implementation of stability programmes, based on information provided by  Member States and on assessments by the Commission and the Committee provided for in Article 109   (c), in particular with a view to identifying actual or expected divergence from the medium-term  objective (or the adjustment path towards it) set in the stability programme for the government  surplus/deficit. 2.  In the event of identified divergence from the medium-term objective (or the adjustment path  towards it), the Council shall in general, as provided for by Article 103  (4), make a  recommendation to the Member State concerned to take budgetary adjustment measures. 3.  In the event that in subsequent monitoring the divergence from the medium-term objective (or  the adjustment path towards it) is seen to persist or worsen, the Council shall in general make a  recommendation to the Member State concerned to take specific corrective action and, as provided  for by Article 103  (4), may make its recommendation public. 4.  As part of the multilateral surveillance in accordance with Article 103  (3), the Council shall  also assess the overall actual and forecast budgetary positions for the EMU area as a whole implied  by national stability programmes and updated programmes. Article 5 In their reports to the European Parliament in accordance with the second subparagraph  of Article 103  (4) the President of the Council and the Commission shall include the results of  the surveillance carried out in the framework of this Regulation. Article 6 This Regulation shall enter into force on 1 July 1998. This Regulation shall be binding in its entirety and directly applicable in all  Member States.