5.10.2007 Official Journal of the European Union L 260/13 (Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory) DECISIONS COUNCIL DECISION of 10 July 2007 establishing, in accordance with Article 104(8), that the action taken by the Czech Republic in response to the Recommendation of the Council in accordance with Article 104(7) of the Treaty establishing the European Community is proving to be inadequate (2007/640/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 104(8) thereof, Having regard to the Recommendation from the Commission, Whereas: accordance with Article 104(6) of the Treaty, that an excessive deficit existed in the Czech Republic. On 5 July 2004, in accordance with Article 104(7) of the Treaty and Article 3(4) of Regulation (EC) No 1467/97, the Council, based on a recommendation from the Commission, adopted a recommendation to the Czech authorities with a view to bringing the excessive deficit situation to an end as rapidly as possible and to taking action in a medium-term framework to achieve the objective of bringing the deficit below 3 % of GDP by 2008 in a credible and sustainable manner, in accordance with the path for deficit reduction specified in the convergence programme submitted by the authorities in May 2004 and endorsed in the Council Opinion of 5 July 2004 on the Convergence Programme of the Czech Republic, 2004-2007 (%), with the following intermediate (1) According to Article 104 of the Treaty, Member States annual targets: 5,3 % of GDP in 2004, 4,7 % of GDP in are to avoid excessive government deficits. 2005, 3,8 % of GDP in 2006, 3,3 % of GDP in 2007. The Council established the deadline of 5 November 2004 to take effective action ‘regarding the measures envisaged to achieve the 2005 deficit target. The Czech Republic agreed to make the recommendation public. (2)  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. The Stability and Growth Pact includes (5)  After the expiry of the deadline of 5 November 2004, Council Regulation (EC) No 1467/97 of 7 July 1997 the Commission concluded, in its Communication to the on speeding up and clarifying the implementation of Council of 14 December 2004 (¥, that no further steps the excessive deficit procedure (') which was adopted to were necessary under the excessive deficit procedure for further the prompt correction of excessive general the Czech Republic as the Czech government had taken government deficits. effective action regarding the measures envisaged to achieve the 2005 deficit target. The November 2005 update of the convergence programme indicated a deficit of 2,7 % of GDP for 2008 which was endorsed ) o ) ) by the Council on 24 January 2006. (3) By Council Decision 2005/185/EC (3), it was decided, following a recommendation from the Commission in () O] C 320, 24.12.2004, p. 1. (*) Communication from the Commission to the Council: The action (') OJ L 209, 2.8.1997, p. 6. Regulation as last amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p. 5). () O] L 62, 9.3.2005, p. 20. taken by the Czech Republic, Cyprus, Malta, Poland and Slovakia in response to the Council recommendations under the excessive deficit procedure — SEC(2004) 1630, 22.12.2004.