6.7.2007 Official Journal of the European Union L 176/21 COUNCIL DECISION of 5 June 2007 abrogating Decision 2004/917/EC on the existence of an excessive deficit in Greece (2007/465EC) 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: (1) By Council Decision 2004/917EC (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 Greece. The Council noted that the general government deficit was 3,2 % of GDP in 2003, above the 3 % of GDP Treaty reference value, while general government gross debt stood at 103 % of GDP, well above the 60 % of GDP Treaty reference value. Figures on general government deficit and general government gross debt for 2003 were revised on several occasions subsequent to Decision 2004/917EC. According to the most recent data, the deficit and debt represented 6,2 % of GDP and 107,8 % of GDP respec- tively. On 6 July 2004, 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 clari- fying the implementation of the excessive deficit procedure (3), the Council addressed a recommendation to Greece with a view to bringing the excessive deficit situation to an end by 2005 at the latest. The recom- mendation was made public. On 19 January 2005, by Council Decision 2005/334[EC (%), in accordance with Article 104(8), the Council decided, based on a recommendation from the Commission, that Greece had not taken effective action in response to the Council recommendation under Article 104(7). On 17 February 2005, by Council Decision 2005/441EC (¥, the Council decided, based on a recommendation from the Commission, to give notice to Greece in accordance with Article 104(9) to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit and extended the deadline for the correction by one year, to 2006. () O] L 389, 30.12.2004, p. 25. (® 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). () O] L 107, 28.4.2005, p. 24. () O] L 153, 16.6.2005, p. 29. 4 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 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 (%). Based on data provided by the Commission (Eurostat) in accordance with Article 8g(1) of Regulation (EC) No 3605/93 following the notification by Greece on 1 April 2007 and on the Commission services' spring 2007 forecast, the following conclusions are warranted: — the general government deficit was reduced from 7,9 % of GDP in 2004 to 2,6 % of GDP in 2006, which is below the 3% of GDP deficit reference value. This is identical to the target set in the December 2005 update of the stability programme, — revenues and expenditure contributed to the nominal adjustment of almost 3 percentage points of GDP compared to the 2005 deficit of 5,5% in almost equal shares. Expressed in terms of the GDP, total revenues increased by 1% percentage points of GDP, with indirect taxes accounting for one-half of a percentage point of GDP. The remaining percentage point is accounted for by increases in social contri- butions and other revenues, including capital transfers (EU transfers). Total expenditure was reduced by 1% percentage points of GDP, mainly driven by reductions in primary expenditure (by 0,5% of GDP) and in interest expenditure (0,25 % of GDP). Capital expenditures were also reduced by around one-half of a percentage point of GDP. One-off revenues amounted to 0,6 % of GDP. The improvement in the structural balance (ie. the cyclically-adjusted balance net of one-off and other temporary measures) is estimated at 2,25 % of GDP in 2006. The deficit debt adjustment at 2,3 % of GDP is largely explained, () 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).