Legal provisions of COM(1996)496-2 - Speeding up and clarifying the implementation of the excessive deficit procedure - Main contents
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dossier | COM(1996)496-2 - Speeding up and clarifying the implementation of the excessive deficit procedure. |
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document | COM(1996)496 ![]() |
date | July 7, 1997 |
Contents
- SECTION 1 - DEFINITIONS AND ASSESSMENTS
- Article 1
- Article 2
- SECTION 2 - SPEEDING UP THE EXCESSIVE DEFICIT PROCEDURE
- Article 3
- Article 4
- Article 5
- Article 6
- Article 7
- Article 8
- SECTION 3 - ABEYANCE AND MONITORING
- Article 9
- Article 10
- SECTION 4 - SANCTIONS
- Article 11
- Article 12
- Article 13
- Article 14
- Article 15
- Article 16
- SECTION 5 - TRANSITIONAL AND FINAL PROVISIONS
- Article 17
- Article 18
SECTION 1 - DEFINITIONS AND ASSESSMENTS
Article 1
2. For the purpose of this Regulation ‘participating Member States’ shall mean those Member States which adopt the single currency in accordance with the Treaty and ‘non-participating Member States’ shall mean those which have not adopted the single currency.
Article 2
In addition, the excess over the reference value shall be considered temporary if budgetary forecasts as provided by the Commission indicate that the deficit will fall below the reference value following the end of the unusual event or the severe economic downturn.
2. The Commission when preparing a report under Article 104c (3) shall, as a rule, consider an excess over the reference value resulting from a severe economic downturn to be exceptional only if there is an annual fall of real GDP of at least 2 %.
3. The Council when deciding, according to Article 104c (6), whether an excessive deficit exists, shall in its overall assessment take into account any observations made by the Member State showing that an annual fall of real GDP of less than 2 % is nevertheless exceptional in the light of further supporting evidence, in particular on the abruptness of the downturn or on the accumulated loss of output relative to past trends.
SECTION 2 - SPEEDING UP THE EXCESSIVE DEFICIT PROCEDURE
Article 3
2. Taking fully into account the opinion referred to in paragraph 1, the Commission, if it considers that an excessive deficit exists, shall address an opinion and a recommendation to the Council in accordance with Article 104c (5) and (6).
3. The Council shall decide on the existence of an excessive deficit in accordance with Article 104c (6), within three months of the reporting dates established in Article 4 (2) and (3) of Regulation (EC) No 3605/93. When it decides, in accordance with Article 104c (6), that an excessive deficit exists, the Council shall at the same time make recommendations to the Member State concerned in accordance with Article 104c (7).
4. The Council recommendation made in accordance with Article 104c (7) shall establish a deadline of four months at the most for effective action to be taken by the Member State concerned. The Council recommendation shall also establish a deadline for the correction of the excessive deficit, which should be completed in the year following its identification unless there are special circumstances.
Article 4
2. The Council, when considering whether effective action has been taken in response to its recommendations made in accordance with Article 104c (7), shall base its decision on publicly announced decisions by the Government of the Member State concerned.
Article 5
Article 6
Article 7
Article 8
SECTION 3 - ABEYANCE AND MONITORING
Article 9
— | if the Member State concerned acts in compliance with recommendations made in accordance with Article 104c (7), |
— | if the participating Member State concerned acts in compliance with notices given in accordance with Article 104c (9). |
2. The period during which the procedure is held in abeyance shall be included neither in the ten month period referred to in Article 7 nor in the two month period referred to in Article 6 of this Regulation.
Article 10
— | by the Member State concerned in response to recommendations made under Article 104c (7), |
— | by the participating Member State concerned in response to notices given under Article 104c (9). |
2. If action by a participating Member State is not being implemented or, in the Council's view, is proving to be inadequate, the Council shall immediately take a decision under Article 104c (9) or Article 104c (11) respectively.
3. If actual data pursuant to Regulation (EC) No 3605/93 indicate that an excessive deficit has not been corrected by a participating Member State within the time limits specified either in recommendations issued under Article 104c (7) or notices issued under Article 104c (9), the Council shall immediately take a decision under Article 104c (9) or Article 104c (11) respectively.
SECTION 4 - SANCTIONS
Article 11
Article 12
2. Each following year, until the decision on the existence of an excessive deficit is abrogated, the Council shall assess whether the participating Member State concerned has taken effective action in response to the Council notice in accordance with Article 104c (9). In this annual assessment the Council shall decide, in accordance with Article 104c (11), and without prejudice to Article 13 of this Regulation, to intensify the sanctions, unless the participating Member State concerned has complied with the Council notice. If an additional deposit is decided, it shall be equal to one tenth of the difference between the deficit as a percentage of GDP in the preceding year and the reference value of 3 % of GDP.
3. Any single deposit referred to in paragraphs 1 and 2 shall not exceed the upper limit of 0,5 % of GDP.
Article 13
Article 14
Article 15
Article 16
SECTION 5 - TRANSITIONAL AND FINAL PROVISIONS
Article 17
Article 18
This Regulation shall be binding in its entirety and directly applicable in all Member States.