L 322/30 Official Journal of the European Communities 27.11.2002 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 5 November 2002 on the existence of an excessive deficit in Portugal — Application of Article 104(6) of the Treaty establishing the European Community (2002/923[EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Commu- nity, and in particular Article 104(6) thereof, Having regard to the recommendation from the Commission under the said Article 104(6), Having regard to the observations made by Portugal, Whereas: In stage three of Economic and Monetary Union (EMU), according to Article 104 of the Treaty Member States shall avoid excessive government deficits. The Stability and Growth Pact is based on the objective of sound government finances as a means of strength- ening the conditions for price stability and for strong sustainable growth conducive to employment creation. The Amsterdam Resolution of the European Council of 17 June 1997 on the Stability and Growth Pact solemnly invites all parties, namely the Member States, the Council and the Commission to implement the Treaty and the Stability and Growth Pact in a strict and timely manner. The excessive deficit procedure under Article 104 of the Treaty provides for a decision on the existence of an excessive deficit; the Protocol on the excessive deficit procedure annexed to the Treaty sets out further provi- sions relating to the implementation of the excessive () O] L 332, 31.12.1993, Commission Regulation (EC) No 351/2002 (O] L 55, 26.2.2002, p. deficit procedure; Regulation (EC) No 3605/93 () lays down detailed rules and definitions for the application of the provision of the said Protocol. Article 104(5) of the Treaty requires the Commission to address an opinion to the Council if the Commission considers that an excessive deficit in a Member State exists or may occur; the Commission has addressed such an opinion on Portugal to the Council on 16 October 2002; according to this opinion: (a) Portugal has reported information on its budgetary situation to the Commission by September 2002. Thereupon, the Commission has, in accordance with Article 4 of the Protocol on the excessive deficit procedure, provided the statistical data for the appli- cation of the said Protocol; (b) in accordance with Article 104(3) of the Treaty, the Commission has prepared in September 2002 a report on Portugal which takes account of the rele- vant factors; (c) in accordance with Article 104(4) of the Treaty, the Economic and Financial Committee has formulated an opinion on the report of the Commission; (d) the Commission considers that there exists an exces- sive deficit in Portugal. Article 104(6) of the Treaty lays down that the Council should consider any observations which the Member State concerned may wish to make before the Council decides after an overall assessment whether an excessive deficit exists. p. 7. Regulation as last amended by