Decision 2017/1789 - Abrogation of Decision 2009/415/EC on the existence of an excessive deficit in Greece - Main contents

EN

Official Journal of the European Union

L 256/5

On 27 April 2009, following a recommendation from the Commission, the Council decided, by Council Decision 2009/415/EC (1) in accordance with Article 104(6) of the Treaty establishing the European Community (TEC), that an excessive deficit existed in Greece. The Council noted that the general government deficit reached 3,5 % of GDP in 2007, thus above the 3 % of GDP Treaty reference value and was estimated at 3,6 % of GDP in 2008 (net of one-offs or 3,4 % of GDP including one-offs). For 2009, the general government deficit was projected to reach 4,4 % of GDP (or 3,7 % including one-off revenues). General government gross debt stood at 94,8 % of GDP in 2007 and 94,6 % of GDP in 2008, well above the 60 % of GDP Treaty reference value. According to the Commission interim forecast of January 2009, the general government debt-to-GDP ratio was projected to increase further to 96,3 % in 2009 and 98,5 % of GDP in 2010.

On 27 April 2009, in accordance with Articl 104(7) TEC and Article 3(4) of Council Regulation (EC) No 1467/97 (2), the Council, based on a recommendation from the Commission, issued a Recommendation to Greece to correct the excessive deficit by 2010 at the latest, by bringing the general government deficit below 3 % of GDP in a credible and sustainable manner. To that end, the Council established a deadline of 27 October 2009 for the Greek Government to take effective action.

On 30 November 2009, the Council established, in accordance with Article 126(8) of the Treaty on the Functioning of the European Union (TFEU), that Greece had not taken effective action; consequently, on 16 February 2010, the Council following a recommendation from the Commission, gave notice to Greece in accordance with Article 126(9) TFEU to take measures to correct the excessive deficit by 2012 at the latest. The Council also set a deadline of 15 May 2010 for effective action to be taken.

The very severe deterioration of the financial situation of the Greek Government led the Member States whose currency is the euro to decide, in 2010, acting on a request from Greece, to provide stability support to Greece, with a view to safeguarding the financial stability of the euro area as a whole, in conjunction with multilateral assistance provided by the International Monetary Fund. Since March 2012, support provided by the Member States whose currency is the euro has taken the form of a loan from the European Financial Stability Facility.

On 10 May 2010, the Council adopted Decision 2010/320/EU (3), which was addressed to Greece, under Article 126(9) and Article 136 TFEU with a view to reinforcing and deepening the fiscal surveillance and gave notice to Greece to take measures for the deficit reduction judged necessary to correct the excessive deficit by 2014 at the latest.

Decision 2010/320/EU was substantially amended several times. It was recast on 12 July 2011, by Council Decision 2011/734/EU (4). Subsequently, Decision 2011/734/EU was significantly amended several times between 8 November 2011 and December 2012 (5).

On 8 July 2015, Greece requested financial assistance from the European Stability Mechanism (‘ESM’) in the form of a three-year loan, and, on 12 July 2015, an agreement in principle was reached on the provision of a loan of the amount of up to EUR 86 000 million to...