31.12. 93 Official Journal of the European Communities No L 332/7 COUNCIL REGULATION (EC) No 3605/93 of 22 November 1993 on the appllcatlon of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular the third subparagraph of Article 104c (14) thereof, Having regard to the proposal from the Commission (?), Having regard to the opinion of the European Parliament (2), Whereas the definitions of ‘government’, ‘deficit’ and ‘investment’ are laid down in the Protocol on the excessive deficit procedure by reference to the European System of Integrated Fconomic Accounts (ESA) (%); whereas precise definitions referring to the classification codes of ESA are required; whereas these definitions may be subject to revision in the context of the necessary harmonization of national statistics or for other reasons; whereas any revision of ESA will be decided by the Council in accordance with the rules on competence and procedure laid down in the Treaty; Whereas the definition of ‘debt’ laid down in the Protocol on the excessive deficit procedure needs to be amplified by a reference to the classification codes of ESA; Whereas Council Directive 89/130/EEC, Euratom of 13 February 1989 on the harmonization of the compilation of gross national product at market prices (%) provides an adequate, detailed definition of gross domestic product at market prices; Whereas, pursuant to the terms of the Protocol on the excessive deficit procedure, the Commission is required to provide the statistical data to be used in that procedure; Whereas detailed rules are required to organize the prompt and regular reporting by the Member States to the Commission of their plinned and actual deficits and of the levels of their debt; () OJ No C 324, 1. 12. 1993, p. 8; and OJ No C 340, 17. 12. 1993, p. 8. ) O] No C 329, 6. 12. 1993. (%) Statistical Office of the European Communities, European System of Integrated Economic Accounts (ESA), second ) edition. () OJ No L 49, 21. 2. 1989, p. 26. Whereas, pursuant to Article 104c (2) and (3) of the Treaty, the Commission is to monitor the development of the budgetary situation and of the stock of government debt in the Member States and to examine compliance with budgetary discipline on the basis of criteria relating to government deficit and government debt; whereas, if a Member State does not fulfil the requirements under one or both criteria, the Commission must take into account all relevant factors; whereas the Commission has to examine whether there is a risk of an excessive deficit in a Member State, HAS ADOPTED THIS REGULATION: SECTION 1 Definitions Article 1 1.  For the purposes of the Protocol on the excessive deficit procedure and of this Regulation, the terms given in the following paragraphs are defined according to the Furopean System of Integrated Economic Accounts (ESA). The codes in brackets refer to ESA, second edition. 2.  ‘Government’ means the sector of general government (S60), that is central government (561), local government (S62) and social security funds (563), to the exclusion of commercial operations, as defined in ESA. The exclusion of commercial operations means that the sector of general government (S60) comprises only institutional units producing non-market services as their main activity. 3.  “‘Government deficit (surplus)’ means the net borrowing (net lending) (NS) of the sector of general government (560), as defined in ESA. The interest comprised in the government deficit is the sum of interest (R41), as defined in ESA. 4. ‘Government investment’ means the gross fixed capital formation (P41) of the sector of general government (S60), as defined in ESA. 5. ‘Government debt’ means the total gross debt at nominal value outstanding at the end of the year of the sector of general government (S60), with the exception of those liabilities the corresponding financial assets of which are held by the sector of general government (S60).