L 51/14 Official Journal of the European Union 22.2.2006 II (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 24 January 2006 on the existence of an excessive deficit in the United Kingdom (2006/125[EC) THE COUNCIL OF THE EUROPEAN UNION, (3) Having regard to the Treaty establishing the European Community, and in particular Article 104(6) thereof, (4) Having regard to the recommendation from the Commission, Having regard to the observations made by the United Kingdom, Whereas: () (1)  Article 104 of the Treaty lays down an excessive deficit procedure (EDP) to ensure that Member States avoid excessive government deficits or that they correct such deficits when they occur. (2)  Pursuant to point 5 of the Protocol on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland, the obligation under Article 104(1) of the Treaty to avoid excessive general government deficits does not apply to the United Kingdom unless it moves to the third stage of economic and monetary union. While 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 excessive deficit procedure under Article 104 of the Treaty, as clarified by Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (1), which is part of the Stability and Growth Pact, 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 provisions relating to the implementation of the excessive deficit procedure. Council Regulation (EC) No 3605/93 (3 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. Having taken into account its report in accordance with Article 104(3) of the Treaty and having regard to the opinion of the Economic and Financial Committee in accordance with Article 104(4), the Commission services” autumn 2005 forecast, as well as the United Kingdom’s December 2005 Pre-Budget Report, the Commission concluded that an excessive deficit exists in the United Kingdom. The Commission therefore addressed such an opinion to the Council in respect of the United Kingdom on 11 January 2006. (") OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) in the second stage, the United Kingdom is required to No 1056/2005 (O] L 174, 7.7.2005, p. 5). endeavour to avoid excessive government deficits, () O] L 332, 31.12.1993, p. 7. Regulation as last amended by Regu- pursuant to Article 116(4) of the Treaty. lation (EC) No 2103/2005 (O] L 337, 22.12.2005, p. 1).