Legal provisions of COM(2010)525 - Enforcement measures to correct excessive macroeconomic imbalances in the euro area - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
dossier | COM(2010)525 - Enforcement measures to correct excessive macroeconomic imbalances in the euro area. |
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document | COM(2010)525 ![]() |
date | November 16, 2011 |
Contents
Article 1 - Subject matter and scope
2. This Regulation shall apply to Member States whose currency is the euro.
Article 2 - Definitions
In addition, the following definition shall apply:
‘exceptional economic circumstances’ means circumstances where an excess of a government deficit over the reference value is considered exceptional within the meaning of the second indent of point (a) of Article 126(2) TFEU and as specified in Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (7).
Article 3 - Sanctions
2. An annual fine shall be imposed by a Council decision, acting on a recommendation by the Commission, where:
(a) | two successive Council recommendations in the same imbalance procedure are adopted in accordance with Article 8(3) of Regulation (EU) No 1176/2011 and the Council considers that the Member State has submitted an insufficient corrective action plan; or |
(b) | two successive Council decisions in the same imbalance procedure are adopted establishing non-compliance in accordance with Article 10(4) of Regulation (EU) No 1176/2011. In this case, the annual fine shall be imposed by means of converting the interest-bearing deposit into an annual fine. |
3. The decisions referred to in paragraphs 1 and 2 shall be deemed adopted by the Council unless it decides, by qualified majority, to reject the recommendation within 10 days of its adoption by the Commission. The Council may decide, by qualified majority, to amend the recommendation.
4. The Commission's recommendation for a Council decision shall be issued within 20 days of the conditions referred to in paragraphs 1 and 2 being met.
5. The interest-bearing deposit or the annual fine recommended by the Commission shall be 0,1 % of the GDP in the preceding year of the Member State concerned.
6. By derogation from paragraph 5, the Commission may, on grounds of exceptional economic circumstances or following a reasoned request by the Member State concerned addressed to the Commission within 10 days of the conditions referred to in paragraphs 1 and 2 being met, propose to reduce or cancel the interest-bearing deposit or the annual fine.
7. If a Member State has constituted an interest-bearing deposit or has paid an annual fine for a given calendar year and the Council thereafter concludes, in accordance with Article 10(1) of Regulation (EU) No 1176/2011 that the Member State has taken the recommended corrective action in the course of that year, the deposit paid for that year together with the accrued interest or the fine paid for that year shall be returned to the Member State pro rata temporis.
Article 4 - Allocation of the fines
Article 5 - Voting in the Council
2. A qualified majority of the members of the Council referred to in paragraph 1 shall be defined in accordance with point (b) of Article 238(3) TFEU.
Article 6 - Economic dialogue
The competent committee of the European Parliament may offer the opportunity to the Member State concerned by such decisions to participate in an exchange of views.
Article 7 - Review
That report shall evaluate, inter alia:
(a) | the effectiveness of this Regulation; |
(b) | the progress in ensuring closer coordination of economic policies and sustained convergence of economic performances of the Member States in accordance with the TFEU. |
2. Where appropriate, that report shall be accompanied by a proposal for amendments to this Regulation.
3. The Commission shall send the report and any accompanying proposals to the European Parliament and to the Council.
Article 8 - Entry into force
This Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties.