10.7.2008 Official Journal of the European Union L 181/41 COUNCIL DECISION of 3 June 2008 abrogating Decision 2005/730/EC on the existence of an excessive deficit in Portugal (2008/561EC) 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: (4) By Council Decision 2005/730/EC (1), following a recom- mendation from the Commission in accordance with Article 104(6) of the Treaty, it was decided that an excessive deficit existed in Portugal. The Council noted that the planned general government deficit for the year 2005 was 6,2 % of GDP, above the 3 % of GDP Treaty reference value, while general government gross debt was expected to reach 66,5 % of GDP, above the 60 % of GDP Treaty reference value. On 20 September 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 (%), the Council made, based on a recommendation from the Commission, a recommen- dation addressed to Portugal with a view to bringing the excessive deficit situation to an end by 2008 at the latest. The recommendation was made public. 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. In accordance with the Protocol on the excessive deficit procedure annexed to the Treaty, the Commission () O] L 274, 20.10.2005, p. 91. (® OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (O] L 174, 7.7.2005, p. 5). 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). Based on data provided by the Commission (Eurostat) in accordance with Article 8g(1) of Regulation (EC) No 3605/93 following the notification by Portugal before 1 April 2008 and on the Commission services' spring 2008 forecasts, the following conclusions are warranted: — the general government deficit was reduced from 6,1 % of GDP in 2005 to 3,9 % of GDP in 2006 and to 2,6 % of GDP in 2007, which brings it below the 3 % of GDP deficit reference value one year before the deadline set by the Council. The latter compares with a target of 3 % of GDP set in the December 2007 update of the stability programme of Portugal, — both a falling government expenditure-to-GDP ratio and a rising revenue-to-GDP ratio contributed to the improvement in the government balance. The expen- diture ratio declined by 1% percentage points of GDP in 2006 and almost %2 of a percentage point of GDP in 2007. In parallel, the government revenue ratio increased by some % of a percentage point of GDP in both 2006 and 2007. Fiscal consolidation hinged mainly upon structural measures, with a marginal contribution from a one-off operation worth 0,1 % of GDP in 2007. The improvement in the structural balance (i.e. the cyclically-adjusted balance net of one- off and other temporary measures) is estimated at two percentage points of GDP in 2006 and one percentage point of GDP in 2007, which is in line with  the Council recommendation  under Article 104(7) for a reduction of the structural balance by 1,5% of GDP in 2006 and, at least, % % of GDP in 2007, () OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regu- lation (EC) No 2103/2005 (O] L 337, 22.12.2005, p. 1).