Decision 2008/560 - 2008/560/EC: Council Decision of 3 June 2008 abrogating Decision 2005/694/EC on the existence of an excessive deficit in Italy

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Contents

  1. Current status
  2. Key information
  3. Key dates
  4. Legislative text
  5. Original proposal
  6. Sources and disclaimer
  7. Full version
  8. EU Monitor

1.

Current status

This decision has been published on July 10, 2008 and should have been implemented in national regulation on the same day at the latest.

2.

Key information

official title

2008/560/EC: Council Decision of 3 June 2008 abrogating Decision 2005/694/EC on the existence of an excessive deficit in Italy
 
Legal instrument Decision
Number legal act Decision 2008/560
Original proposal SEC(2008)574 EN
CELEX number i 32008D0560

3.

Key dates

Document 03-06-2008
Publication in Official Journal 10-07-2008; OJ L 181 p. 39-40
Effect 10-07-2008; Takes effect Date notif.
End of validity 31-12-9999
Notification 10-07-2008; {titleAndReference.draft.disclaimer.new|http://publications.europa.eu/resource/authority/fd_365/titleAndReference.draft.disclaimer.new}

4.

Legislative text

10.7.2008   

EN

Official Journal of the European Union

L 181/39
 

COUNCIL DECISION

of 3 June 2008

abrogating Decision 2005/694/EC on the existence of an excessive deficit in Italy

(2008/560/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 104(12) thereof,

Having regard to the recommendation from the Commission,

Whereas:

 

(1)

By Council Decision 2005/694/EC (1), following a recommendation from the Commission in accordance with Article 104(6) of the Treaty, it was decided that an excessive deficit existed in Italy. The Council noted that the general government deficit was above but close to the 3 % of GDP reference value in both 2003 and 2004, while general government gross debt stood at around 106-107 % of GDP in both years, clearly above the 60 % of GDP Treaty reference value, and it had not declined at a satisfactory pace over recent years.
 

(2)

On 28 July 2005, in accordance with Article 104(7) of the Treaty 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 (2), the Council made, based on a recommendation from the Commission, a recommendation addressed to Italy with a view to bringing the excessive deficit situation to an end by 2007 at the latest. The recommendation was made public.
 

(3)

In accordance with Article 104(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.
 

(4)

In accordance with the Protocol on the excessive deficit procedure annexed to the Treaty, the Commission provides the data for the implementation of the procedure. As part of the application of the 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 4 of 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 (3).
 

(5)

Based on data provided by the Commission (Eurostat) in accordance with Article 8g(1) of Regulation (EC) No 3605/93 following the notification by Italy before 1 April 2008 and on the Commission services' spring 2008 forecast, the following conclusions are warranted:

 

—

the general government deficit, after rising from 3,5 % of GDP in 2004 to 4,2 % of GDP in 2005, was reduced to 3,4 % of GDP in 2006 and finally to 1,9 % of GDP in 2007, which is below the 3 % of GDP deficit reference value. Net of the budgetary impact of one-off measures, the deficit would be 1,7 % of GDP in 2007. This compares with a target of 2,8 % of GDP set in the December 2006 update of the stability programme,
 

—

the adjustment was driven by an increase in permanent tax revenues over the 2006-2007 period, which largely exceeded expectations. This was mostly thanks to a higher-than-expected effectiveness of the adopted measures and somewhat higher-than-projected economic growth. After an estimated worsening by of a percentage point of GDP in 2005, the structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) is estimated to have improved by 1Formula and 1Formula percentage points of GDP in 2006 and 2007, respectively,
 

—

for 2008, the spring 2008 forecast projects an increase in the deficit to 2,3 % of GDP, including 0,1 % of GDP one-offs proceeds from the sale of real estate. The envisaged worsening of the budgetary balance will be driven by both a rise in the ratio of current primary expenditure to GDP and lower current taxes. This is...


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This text has been adopted from EUR-Lex.

5.

Original proposal

 

6.

Sources and disclaimer

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7.

Full version

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8.

EU Monitor

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