23.11.2011 Official Journal of the European Union L 306/33 COUNCIL REGULATION (EU) No 1177/2011 of 8 November 2011 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular the second subparagraph of Article 126(14) thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Having regard to the opinion of the European Parliament ('), Having regard to the opinion of the European Central Bank (?), Acting in accordance with a special legislative procedure, Whereas: (1) The coordination of the economic policies of the Member States within the Union, as provided for by the Treaty on the Functioning of the European Union (TFEU), should entail compliance with the guiding prin- ciples of stable prices, sound public finances and monetary conditions, and a sustainable balance of payments. (2)  The Stability and Growth Pact (SGP) initially consisted of Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (), Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (¥) and the Resolution of the European Council of 17 June 1997 on the Stability and Growth Pact (°). Regulations (EC) No 1466/97 and (EC) No 146797 were amended by Regulations (EC) No 1055/2005 (°) and (EC) No (") European Parliament opinion of 28 September 2011 (not yet published in the Official Journal). ) O] C 150, 20.5.2011, p. 1. %) O] L 209, 2.8.1997, p. 1. (2 ( () OJ L 209, 2.8.1997, p. 6. ( ( 5 ) O] C 236, 2.8.1997, p. 1. %) Council Regulation (EC) No 1055/2005 of 27 June 2005 amending Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coor- dination of economic policies (O] L 174, 7.7.2005, p. 1). 1056/2005 (') respectively. In addition, the Council Report of 20 March 2005 on ‘Improving the implemen- tation of the Stability and Growth Pact’ (%) was adopted. (3)  The SGP is based on the objective of sound and sustainable government finances as a means of strengthening the conditions for price stability and for strong sustainable growth underpinned by financial stability, thereby supporting the achievement of the Union’s  objectives for sustainable growth and employment. (4)  Experience gained and mistakes made during the first decade of the economic and monetary union show a need for improved economic governance in the Union, which should be built on stronger national ownership of commonly agreed rules and policies and on a more robust framework at the level of the Union for the surveillance of national economic policies. (5)  The common framework for economic governance needs to be enhanced, including improved budgetary surveillance, in line with the high degree of integration between Member States’ economies within the Union, and particularly within the euro area. (6)  The improved economic governance framework should rely on several interlinked and coherent policies for sustainable growth and jobs, in particular a Union strategy for growth and jobs, with particular focus on developing and strengthening the internal market, fostering international trade and competitiveness, a European Semester for strengthened coordination of economic and budgetary policies, an effective framework for preventing and correcting excessive government deficits (the SGP), a robust framework for preventing and correcting macroeconomic imbalances, minimum  requirements for national budgetary frameworks, and enhanced financial market regulation and supervision, including macroprudential supervision by the European Systemic Risk Board. (7)  Achieving and maintaining a dynamic internal market should be considered an element of the proper and smooth functioning of the economic and monetary union. (7) Council Regulation (EC) No 1056/2005 of 27 June 2005 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure (O] L 174, 7.7.2005, p. 5). (°) See document 7423[/3/05 on http:/[www.consilium.europa.euf documents.aspx?lang=en