No L 209/6 Official Journal of the European Communities 2.8.97 COUNCIL REGULATION (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the Europcan Community, and in particular the second subparagraph of Article 104¢ (14) thereof, Having regard to the proposal from the Commission (), Having regard to the opinion of the FEuropean bl Parliament (*), Having regard to the opinion of the European Monetary Institute, (1)  Whereas it is necessary to speed up and to clarify the excessive deficit procedure set out in Article 104¢ of the Treaty in order to deter excessive general government deficits and, if they occur, to further their prompt correction; whereas  the provisions of this Regulation, which are to the above effect and adopted under Article 104¢ (14) second subparagraph, constitute, together with those of Protocol (No 5) to the Treaty, a new integrated set of rules for the application of Article 104c¢; (2)  Whereas the Stability and Growth Pact is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation; (3)  Whereas the Stability and Growth Pact consists of this Regulation, of Council Regulation (EC) No 1466/97 ()  which aims to strengthen the surveillance of budgetary positions and the surveillance and coordination of economic policies and of the Resolution of the European Council of 17 June 1997 on the Stability and Growth Pact (%), in which, in accordance with Article D of the Treaty on European. Union, firm political guidelines are issued in order to implement the Stability and Growth Pact in a strict and timely 1y O] No C 368, 6. 12. 1996, p. 12. Y1) O] No C 380, 16. 12. 1996, p. 29. %) See p. 1 of this Official Journal. ( ( ) () O] No C 236, 2. 8. 1997, p. 1. manner and in particular to adhere to the medium term objective for budgetary positions of close to balance or in surplus, to which all Member States are committed, and to take the corrective budgetary action they deem necessary to meet the objectives  of their stability and convergence programmes, whenever they have information indicating actual or expected significant divergence from the medium-term budgetary objective; Whereas in stage three of Economic and Monetary Union (EMU) the Member States are, according to Article 104¢ of the Treaty, under a clear Treaty obligation to avoid excessive government deficits; whereas under Article 5 of Protocol (No 11) to the Treaty, paragraphs 1, 9 and 11 of Article 104¢ do not apply to the United Kingdom unless it moves to the third stage; whereas the obligation under Article 109¢ (4) to endeavour to avoid excessive deficits will continue to apply to the United Kingdom; Whereas Denmark, referring to paragraph 1 of Protocol (No 12) to the Treaty has notified, in the context of the Edinburgh decision of 12 December 1992, that it will not participate in the third stage; whereas, therefore, in accordance with paragraph 2 of the said Protocol, paragraphs 9 and 11 of Article 104¢ shall not apply to Denmark; Whereas in stage three of EMU Member States remain responsible for their national budgetary policies, subject to the provisions of the Treaty; whercas the Member States will take the necessary measures in order to meet their responsibilities in accordance with the provisions of the Treaty; Whereas adherence to the medium-term objective of budgetary positions close to balance or in surplus to which all Member States are committed, contributes to the creation of the appropriate conditions for price stability and for sustained growth conducive to employment creation in all Member States and will allow them to deal with normal cyclical fluctuations while keeping the government deficit within the 3% of GDP reference value;