Activities of Billy KELLEHER related to 2023/0137(CNS)
Shadow reports (1)
REPORT on the proposal for a Council regulation amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure
Amendments (7)
Amendment 23 #
Proposal for a regulation
Recital 8
Recital 8
(8) In order to simplify the Union fiscal framework and increase transparency, a single operational indicator anchored in debt sustainability should serve as a basis for setting the fiscal path and carrying out annual fiscal surveillance for each Member State. That single indicator should be based on nationally financed net primary expenditure, that is to say expenditure net of discretionary revenue measures and excluding interest expenditure as well as cyclical unemployment expenditure and expenditure on Union programmes fully matched by revenue from Union funds, including the costs related to the borrowing of funds for the loans related to Union programmes. This indicator allows for macro-economic stabilisation as it is not affected by the operation of automatic stabilisers, including revenue and expenditure fluctuations outside the direct control of the government.
Amendment 48 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) For those years where deficit is expected to remain above the reference value, the net expenditure path should be consistent with an effective yearly reduction of 0.5% of the Member State GDP on average. The Commission will set an annual minimum adjustment figure for each Member State, and those figures will fall within a range of 0.2% to 0.8% of GDP as a benchmark. When deciding the exact figure for each Member State each year, the Commission will take into account the economic growth of the Union as a whole and of that Member State, together with the past adjustments and future projected adjustments of the Member State during the correction period. That way, deficit reduction will oscillate below or above a 0.5% target in order to avoid procyclicality, while compliance with the wider deficit reduction objective is preserved as there is an obligation to have an effective deficit reduction of 0.5% of GDP per year on average. During periods of high economic growth, the annual minimum adjustment should be set by the Commission above 0.5%, and the opposite should happen in times of economic contraction. When conducting the calculations and assessments to set the annual minimum adjustment figure, the Commission will also take into account deficit reduction in the previous years of the period and the remaining deficit reduction needed to ensure a reduction of 0.5% of GDP on average by the end of the correction period. Therefore, when providing the minimum adjustment figure for a given year, the Commission will also present the estimates for the annual minimum adjustment figure during the remaining years of the correction period. The Commission should incorporate into its assessment a worst-case scenario where an economic downturn persists until the end of the period and assess its likelihood, in order to avoid any potential backloading
Amendment 69 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 1 – paragraph 2 – point b
Article 1 – paragraph 2 – point b
(b) ‘net expenditure’ means government expenditure net of interest expenditure, discretionary revenue measures, costs related to the borrowing of funds for the loans related to the national plans in accordance with the Recovery and Resilience Facility in accordance with Regulation (EU) 2021/241 , cyclical elements of unemployment benefit expenditure and other budgetary variables outside the control of the government, as defined in Annex II, point (a) of Regulation (EU) of the European Parliament and of the Council [on the preventive arm]*;
Amendment 130 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 2 – paragraph 3 – subparagraph 3 – point b
Article 2 – paragraph 3 – subparagraph 3 – point b
(b) the developments in the medium- term budgetary positions, including, in particular, the size of the actual deviation from the net expenditure path, in annual and cumulative terms as measured by the control account, and the extent to which the deviation is due to a severe economic downturn in the euro area or in the Union as a whole or to exceptional circumstances outside the control of the government with a major impact on the public finances of the Member State concerned in accordance with Articles 24 and 25 of Regulation (EU) [on the preventive arm]. Where relevant, the deviation compared to the technical trajectory shall also be taken into account when considering the size of the deviation;
Amendment 186 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EC) No 1467/97
Article 3 – paragraph 4 – subparagraph 1
Article 3 – paragraph 4 – subparagraph 1
The Council recommendation made in accordance with Article 126(7) TFEU shall establish a maximum deadline of six months for effective action to be taken by the Member State concerned. When warranted by the seriousness of the situation, the deadline for effective action may be three months. The Council recommendation shall also establish a deadline for the correction of the excessive deficit. In its recommendation, the Council shall also request that the Member State implements a corrective net expenditure path, which ensures that the general government deficit remains or is brought and maintained below the reference value within the deadline set in the recommendation. For the years when the general government deficit is expected to exceed the reference value, the corrective net expenditure path shall be consistent with a minimum annual adjustment of at least 0,5% of GDP as a benchmarkon average. Each year, an annual minimum adjustment figure for each Member State shall be set by the Commission, after consulting the European Fiscal Board, within a range of 0.2% to 0.8% of GDP as a benchmark. The annual minimum adjustment figure shall be determined on the basis of the following criteria: (i) Expected GDP growth in the relevant year in both the Union as a whole and the specific Member State. (ii) Past adjustments and future forecasted adjustments by the specific Member State within the adjustment period. When providing the annual minimum adjustment figure, the Commission shall also release a projection of annual minimum adjustment figures for each of the remaining years of the adjustment period based on its own economic growth forecasts. The total minimum adjustment foreseen in that projection shall be equivalent to a 0.5 percent annual adjustment on average. The quantitative elements and the calculations needed for determining the annual minimum adjustment figures for each Member State shall be developed by the Commission in a delegated act in accordance with Article 17a(new) of this Regulation.
Amendment 221 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a
Article 1 – paragraph 1 – point 4 – point a
Regulation (EC) No 1467/97
Article 5 – paragraph 1 – subparagraph 1
Article 5 – paragraph 1 – subparagraph 1
Any Council decision to give notice to the participating Member State concerned to take measures for the deficit reduction in accordance with Article 126(9) TFEU shall be taken within two months of the Council decision under Article 126(8) TFEU establishing that no effective action has been taken. In the notice, the Council shall request that the Member State implements a corrective net expenditure path which ensures that the general government deficit remains or is brought and maintained below the reference value within the deadline set in the notice. For the years where the general government deficit is expected to exceed the reference value, the corrective net expenditure path shall be consistent with athe minimum annual adjustment of at least 0,5% of GDP as a benchmarkon average as referred to in Article 3, paragraph 4 of this Regulation.
Amendment 277 #
Proposal for a regulation
Article 1 – paragraph 1 – point 14 a (new)
Article 1 – paragraph 1 – point 14 a (new)
Regulation (EC) No 1467/97
Article 17 c (new)
Article 17 c (new)
(14a) The following Article 17c is inserted: 'Article 17c Exercise of the delegation The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. The power to adopt the delegated acts referred to in Article 3 shall be conferred on the Commission for a period of one year from [Please insert the date of entry into force of this Council Regulation.] Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. A delegated act adopted pursuant to Article 3 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.’;