17.3.2012 Official Journal of the European Union L 7819 COUNCIL IMPLEMENTING DECISION of 13 March 2012 suspending commitments from the Cohesion Fund for Hungary with effect from 1 January 2013 (2012/156/EU) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regu- lation (EC) No 1164/94 ('), and in particular Article 4 thereof, Having regard to the proposal from the European Commission, Whereas: (1) Article 174 of the Treaty on the Functioning of the European Union (TFEU) calls for the Union to develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion in order to promote its overall harmonious development. (2)  In accordance with Article 175 TFEU, Member States are to conduct their economic policies and coordinate them in such a way as to attain the objectives set out in Article 174 TFEU. The formulation and implementation of the Union’s policies and actions and the implemen- tation of the internal market also have to take into account the objectives set out in Article 174 TFEU and contribute to their achievement. (3)  Article 121(3) TFEU calls upon the Council to monitor economic developments in each of the Member States and in the Union in order to ensure closer coordination of economic policies and sustained convergence of the economic performances of Member States and to ensure consistency of economic policies with the broad guidelines of the economic policies of the Member States and of the Union. (4 In accordance with Article 126 TFEU, Member States are to avoid excessive government deficits. (5)  In accordance with Article 177 TFEU, the European Parliament and the Council are to define the tasks, priority objectives and the organisation of the Cohesion Fund which provides a financial contribution to projects in the fields of environment and trans-European networks in the area of transport infrastructure. (6)  In the Protocol (No 28) on economic, social and terri- torial cohesion, annexed to the Treaty on European () O] L 210, 31.7.2006, p. 79. Union and to the TFEU, the Member States agreed that the Cohesion Fund will provide Union financial contributions to projects in the fields of environment and trans-European networks in Member States with a per capita GNP of less than 90 % of the Union average which have a programme leading to the fulfilment of the conditions of economic convergence as set out in Article 126 TFEU. (7)  Article 4 of Regulation (EC) No 1084/2006 sets out conditions applicable to Cohesion Fund assistance and makes access to financial assistance from the Cohesion Fund conditional on the avoidance of an excessive government deficit as set out in Article 126 TFEU (?). Under Article 4(1) of Regulation (EC) No 10842006 the Council may decide, on a proposal from the Commission, to suspend either the totality or part of the commitments from the Cohesion Fund for a bene- ficiary Member State if: (i) the Council has decided in accordance with Article 126(6) TFEU () that excessive government deficit exists in the Member State concerned; and (i) the Council has established in accordance with Article 126(8) TFEU (%) that the Member State concerned has not taken effective action in response to a Council recommendation under Article 126(7) TFEU (°) to correct the excessive government deficit by the established deadline. Such suspension of commitments should be effective from 1 January of the year following the decision to suspend. (8 On 5 July 2004, by Decision 2004/918/EC (%) the Council decided in accordance with Article 104(6) of the Treaty establishing the European Community (TEC) that an excessive deficit existed in Hungary. The Council adopted a first recommendation on 5 July 2004, a second recommendation on 8 March 2005 and a third recommendation on 10 October 2006 addressed to Hungary in accordance with Article 104(7) TEC. On 7 July 2009 the Council adopted its fourth recommen- dation to Hungary in accordance with Article 104(7) TEC (‘Council Recommendation of 7 July 2009’) with a view to bringing an end to the situation of an excessive government deficit by 2011 at the latest. Specifically, Hungary was recommended: (i) to limit the deterioration of the fiscal position in 2009 by ensuring a rigorous implementation of the adopted and announced corrective measures to respect the target of 3,9% of GDP; (ii) starting from 2010, to implement rigorously the (®) Replacing Article 104 of the Treaty establishing the European Community (TEC) as referred to in Article 4 of Regulation (EC) No 1084/2006. (®) Replacing Article 104(6) TEC as referred to in Article 4 of Regulation (EC) No 1084/2006. (*) Replacing Article 104(8) TEC as referred to in Article 4 of Regulation (EC) No 1084/2006. () Replacing Article 104(7) TEC as referred to in Article 4 of Regulation (EC) No 1084/2006. () OJ L 389, 30.12.2004, p. 27.