Amended proposal for a Council Regulation (EC) on speeding up and clarifying the implementation of the excessive deficit procedure
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 24. 06. 1997 COM(97) 306 final 96/ 0248 (CNS) Amended proposal for a COUNCIL REGULATION (EX) ON SPEEDING UP AND CLARIFYING THE IMPLEMENTATION OF THE EXCESSIVE DEFICIT PROCEDURE (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) ta m" s B EXPLANATORY MEMORANDUM On 16 October 1996, the Commission adopted in COM(96)496 final a proposal for a Council Regulation on speeding up and clarifying the implementation of the excessive deficit procedure, this proposal was amended by the Commission on 19 March 1997 in COM(97)117 final to include inter alia, the amendments proposed by the European Parliament, under the consultation procedure, which had been accepted by the Commission and the agreements reached in the European Council in Dublin in December 1996. The changes introduced in the Commission initial proposal were enough to justify a new consultation of the European Parliament; meanwhile, the Council Working Group on EMU made further progress on the Commission amended proposal which was endorsed by Ecofin Minister in Noordwijk on 4-5 April 1997. The draft Regulation text agreed in Noordwijk is acceptable for the Commission, with the exception of draft Article 16 because aternative versions were still under consideration. As a consequence, the European Parliament was de facto consulted on the draft regulation agreed in Noordwijk. (Council doc. 6931/2/97 Rev2, 7 April 1997). In these circumstances, the Commission considers that some of the amendments proposed by the European Parliament in the new consultation should be accepted and will recommend their acceptance to the Council with a view to final agreement on the Stability and Growth Pact at the Amsterdam European Council in June. £ Amended proposal for a COUNCIL REGULATION ŒO ON SPEEDLMG UP AND CLARIFYING THE IMPLEMENTATION OF THE EXCESSIVE DEFICIT PROCEDURE The Commission, having regard the amendments proposed by the European Parliament to the document 6931/2/97-C4-0182/97-96/0248 (CNS), has accepted the following amendments: • Recital 3 now reads: (3) Whereas, in the Resolution of the European Council of 17 June 1997, the European Council, in accordance with Article D of the Treaty, has given firm political guidelines in order to implement the Stability and Growth Pact in a strict and timely manner; • Recital 7 now reads: to to adherence (7) Whereas the medium-term objective of budgetary positions close to balance or in surplus to which all Member States are committed the appropriate the creation of contributes conditions for price stability and for sustained growth conducive to employment creation in all Member States and will allow them to deal with normal cyclical fluctuations while keeping the government deficit within the 3 percent of GDP reference value; Article 12(2): 2. Each following year, until the decision on the existence of an excessive deficit is abrogated, the the participating Council shall assess whether Member State concerned has taken effective action in response to the Council notice in accordance with Article 104c(9). In this annual assessment the Council shall decide, in accordance with Article 104(c)(ll), and without prejudice to Article 13 of this regulation, to intensify the sanctions, unless the participating Member State concerned has complied with the Council notice. If an additional deposit is decided, it shall be equal to one tenth of the difference between the deficit as a percentage of GDP in the preceding year and the 3% of GDP reference value. 3 ISSN 0254-1475 COM(97) 306 final DOCUMENTS EN 01 Catalogue number : CB-C0-97-293-EN-C ISBN 92-78-21476-0 Office for Official Publications of the European Communities L-2985 Luxembourg