Activities of Diogo FEIO related to 2010/0276(CNS)
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 PDF (423 KB) DOC (421 KB)
Amendments (28)
Amendment 58 #
Proposal for a regulation – amending act
Recital 1
Recital 1
(1) The coordination of the economic policies of the Member States within the Union, as provided by the Treaty, should entail compliance with the guiding principles of stable prices, sustainable growth, and sound public finances and monetary conditions and a sustainable balance of payments.
Amendment 126 #
Proposal for a regulation – amending act
Recital 7
Recital 7
(7) The establishment of the existence of an excessive deficit based on the debt criterion and the steps leading to it should not be based solely on non- compliance with the numerical benchmark, but always take into account the whole range of relevant factors covered by the Commission report under Article 126(3) of the TreatNon-compliance with the numerical benchmark for debt reduction should not be sufficient for the establishment of an excessive deficit, which should take into account the whole range of relevant factors covered by the Commission report under Article 126(3) of the Treaty. The assessment of the effect of the cycle and the composition of the stock- flow adjustment on debt developments need to be analysed carefully.
Amendment 137 #
Proposal for a regulation – amending act
Recital 8
Recital 8
(8) In the establishment of the existence of an excessive deficit based on the deficit criterion and the steps leading to it there is a need to take into account the whole range of relevant factors covered by the report under Article 126(3) of the Treaty if the government debt to gross domestic product does not exceed the reference value. These factors should always be taken into account when establishing the existence of an excessive deficit based on the debt criterion and in the steps leading to it.
Amendment 138 #
Proposal for a regulation – amending act
Recital 8 a (new)
Recital 8 a (new)
(8a) Even when the existence of the excessive deficit has been established, all the relevant factors should be taken into account in the subsequent steps of the procedure. In particular, the implementation of policies aimed at increasing the medium-term rate for potential growth in the context of the common growth strategy of the Union should be appropriately taken into account when setting the deadline for correcting the excessive deficit and eventually extending it.
Amendment 140 #
Proposal for a regulation – amending act
Recital 8 b (new)
Recital 8 b (new)
(8b) In taking into account systemic pensions reforms among the relevant factors, the central consideration should be whether they enhance the long-term sustainability of the overall pension system, while not increasing risks for the medium-term budgetary position.
Amendment 142 #
Proposal for a regulation – amending act
Recital 9
Recital 9
(9) The Commission report under Article 126(3) of the Treaty should appropriately consider the quality of the national fiscal framework, as it plays a crucial role in supporting fiscal consolidation and sustainable public finances. This consideration should include the minimum requirements as laid down in Council Directive […] on requirements for budgetary frameworks of the Member States as well as other agreed desirable requirements for fiscal discipline.
Amendment 144 #
Proposal for a regulation – amending act
Recital 10
Recital 10
(10) In order to support the monitoring of compliance with Council recommendations and notices for the correction of the situations of excessive deficit, there is a need that these specify annual budgetary targets consistent with the required fiscal improvement in cyclically adjusted terms, net of one-off and temporary measures. In this context, the 0.5% of GDP annual benchmark should be understood as annual average basis.
Amendment 162 #
Proposal for a regulation – amending act
Article 1 – point 1
Article 1 – point 1
Regulation (EC) No 1467/97
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation sets out the provisions to speed up and clarify the excessive deficit procedure, having as its. This procedure has the objective to deter excessive government deficits and, if they occur, to further prompt their correction, where compliance with the budgetary discipline is examined on the basis of the government deficit and government debt criteria.
Amendment 165 #
Proposal for a regulation – amending act
Article 1 – point 1
Article 1 – point 1
Regulation (EC) No 1467/97
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
The Council shall use the reversed qualified majority voting when deciding on the adoption of recommendations and notices based on Commission formal positions' under Article 126 of the Treaty.
Amendment 171 #
Proposal for a regulation – amending act
Article 1 – point 2 – point a
Article 1 – point 2 – point a
Regulation (EC) No 1467/97
Article 2 – paragraph 1 – subparagraph 1
Article 2 – paragraph 1 – subparagraph 1
1. The excess of a government deficit over the reference value shall be considered exceptional, in accordance with the second indent of Article 126 (2) (a) of the Treaty, when resulting from an unusual event outside the control of the Member State concerned and which hasith a major impact on the financial position of general government, or when resulting from a severe economic downturn.
Amendment 177 #
Proposal for a regulation – amending act
Article 1 – point 2 – point b
Article 1 – point 2 – point b
Regulation (EC) No 1467/97
Article 2 – paragraph 1a
Article 2 – paragraph 1a
1a. When it exceeds the reference value, the ratio of the government debt to gross domestic product (GDP) is to be considered sufficiently diminishing and approaching the reference value at a satisfactory pace in accordance with Article 126 (2) (b) of the Treaty if the differential with respect to the reference value has reduced over the previous three years at an average rate of the order of one-twentieth per year. For a period of 3 ye, as a benchmark, following an assessment made over a three-year period. The requirement under the debt criterion shall be also considered fulfilled if the budgetarsy from [date of entering into force of this Regulation - to be inserted], account shall be taken of the backward-looking nature of this indicator in its application. orecasts as provided by the Commission indicate that the required reduction in the differential will occur over the three-year period encompassing the two years following the last year for which the data is available. For a Member State that is subject to an excessive deficit procedure at [date of adoption of this Regulation - to be inserted] and for a period of three years from the correction of the excessive deficit, the requirement under the debt criterion shall be considered fulfilled if the Member State concerned makes sufficient progress towards compliance as assessed in the Council opinions on its Stability or Convergence Programme.
Amendment 189 #
Proposal for a regulation – amending act
Article 1 – point 2 – point c
Article 1 – point 2 – point c
Regulation (EC) No 1467/97
Article 2 – paragraph 3
Article 2 – paragraph 3
3. The Commission, when preparing a report under Article 126(3) of the Treaty shall take into account all relevant factors as indicated in that Article insofar they affect significantly the assessment of compliance with the deficit and debt criteria by the concerned Member State. The report shall appropriately reflect: – The developments in the medium-term economic position (in particular potential growth, prevailing cyclical condi and cyclical developments, inflations, inflation,the implementation of policies in the context of common growth strategy of the Union and prevention and correction of excessive macroeconomic imbalances) and; – The developments in the medium-term budgetary position (in particular, fiscal consolidation efforts in “good times”, public investment, the implementation of policies in the context of the common growth strategy for the Union and the overall quality of public finances, in particular, compliance with Council Directive […] on requirements for budgetary frameworks of the Member States).primary expenditure and revenue developments against prevailing cyclical conditions, public investment and the overall quality of public finances, in particular the effectiveness of national budgetary frameworks); – The developments of the current public expenditure should also be taken into account in particular that it remains stable in real terms; – The report shall also analyse developments in the medium-term government debt position as relevant (in particular, it appropriately reflects, its dynamics and sustainability (in particular, risk factors including the maturity structure and currency denomination of the debt, stock- flow operaadjustment and its compositions, accumulated reserves and other governmentfinancial assets; guarantees, notably linked to the financial sector; implicit liabilities both explicit and implicit related to ageing and private debt to the extent that it may represent a contingent implicit liability for the government).; – Furthermore, the Commission shall give due consideration to any other factors which, in the opinion of the Member State concerned, are relevant in order to comprehensively assess in qualitative terms the excess over the reference value compliance with deficit and debt criteria and which the Member State has put forward to the Commission and to the Council. In that context, special consideration shall be given to financial contributions to fostering international solidarity and to achieving Union policy goals, including financial stability. particular debt incurred in the form of bilateral and multilateral support between Member States in the context of financial and sovereign debt crisis. When preparing a report, the Commission may request additional information from the Member State concerned.
Amendment 206 #
Proposal for a regulation – amending act
Article 1 – point 2 – point d
Article 1 – point 2 – point d
Regulation (EC) No 1467/97
Article 2 – paragraph 4
Article 2 – paragraph 4
4. The Commission and the Council shall make a balanced overall assessment of all the relevant factors, specifically,to the extent to which they affect the assessment of compliance with the deficit and/or the debt criteria as aggravating or mitigating factors debt criteria by the concerned Member State. Relevant factors shall be taken into account as appropriate in both the steps leading to the decision on the existence of an excessive deficit provided for in paragraphs 4, 5 and 6 of Article 126 of the Treaty, namely, to confirm that the concerned Member State should be placed in excessive deficit to reach the opposite conclusion and the subsequent steps of Article 126, as specified in Art. 2(5) and 2(6) of this Regulation. When assessing compliance on the basis of the deficit criterion, if the ratio of the government debt to GDP exceeds the reference value, these factors shall be taken into account in the steps leading to the decision on the existence of an excessive deficit provided for in paragraphs 4, 5 and 6 of Article 126 of the Treaty only if the double condition of the overarching principle that, before these relevant factors are taken into account, the general government deficit remains close to the reference value and its excess over the reference value is temporary is fully met.
Amendment 211 #
Proposal for a regulation – amending act
Article 1 – point 2 – point d a (new)
Article 1 – point 2 – point d a (new)
Regulation (EC) No 1467/97
Article 2 – paragraph 5
Article 2 – paragraph 5
(d a) paragraph 5 is amended as follows: 5. The Commission and the Council, in all budgetary assessments in the framework of the excessive deficit procedure, shall give due consideration to the implementation of pension reforms introducing a multipillar system that includes a mandatory, fully funded pillar. In particular, consideration shall be given to the features of the overall pension system created by the reform, namely whether it promotes long-term sustainability while not increasing risks for the medium-term budgetary position.
Amendment 212 #
Proposal for a regulation – amending act
Article 1 – point 2 – subpoint d b (new)
Article 1 – point 2 – subpoint d b (new)
Regulation (EC) No 1467/97
Article 2 – paragraph 5 a (new)
Article 2 – paragraph 5 a (new)
5a. However, these factors shall be taken into account in the steps leading to the decision on the existence of an excessive deficit when assessing compliance on the basis of the debt criterion.
Amendment 213 #
Proposal for a regulation – amending act
Article 1 – point 2 – point d b (new)
Article 1 – point 2 – point d b (new)
Regulation (EC) No 1467/97
Article 2 – paragraph 6
Article 2 – paragraph 6
(db) Paragraph 6 is amended as follows: 6. If the Council, taking into account the position of the Commission, has decided, on the basis of Article 126(6) of the Treaty, that an excessive deficit exists in a Member State, the Commission and the Council shall take into account the relevant factors mentioned in paragraph 3, as they affect the situation of the concerned Member State, also in the subsequent procedural steps of Article 126, including as specified in Articles 3(4), 3(5) and 5(2) of this Regulation, namely in establishing a deadline for the correction of the excessive deficit and eventually extending it. However those relevant factors shall not be taken into account for the decision of the Council under Article 126(12) of the Treaty on the abrogation of some or all of its decisions under paragraphs 6 to 9 and 11 of Article 126.
Amendment 220 #
Proposal for a regulation – amending act
Article 1 – point 2 – point e
Article 1 – point 2 – point e
Regulation (EC) No 1467/97
Article 2 – paragraph 7
Article 2 – paragraph 7
7. In the case of Member States where the excess of the deficit or the breach of the requirements of the debt criterion according to Article 126 (2) (b) of the Treaty reflects the implementation of a pension reform introducing a multi-pillar system that includes a mandatory, fully funded pillar, the Commission and the Council shall also consider the cost of the reform to the publicly managed pillar when assessing developments in EDP deficit and debt figures. In cases where the debt ratio exceeds the reference value, the cost of the reform shall be considered only if the deficit remains close to the reference value. For that purpose, for a period of five years starting from the date of entry into force of such a reform, consideration shall be given to its net cost as reflected in deficit and debt developments on the basis of a linear degressive scale. When assessing compliance on the basis of the deficit criterion, consideration shall be given to the net cost of the reform only if the deficit remains close to the reference value, unless the debt ratio does not exceed the reference value. Additionally, irrespective of the date of entry into force of the reform, its net cost as reflected in debt developments shall be given consideration for a transitional period of five years from [date of entry into force of this Regulation, to be inserted] on the basis of the same linear degressive scale. The net cost as thus calculated shall be taken into account also for the decision of the Council under Article 126(12) of the Treaty on the abrogation of some or all of its decisions under paragraphs 6 to 9 and 11 of Article 126 of the Treaty, if the deficit has declined substantially and continuously and has reached a level that comes close to the reference value and, in case of non- fulfilment of the requirements of the debt criterion, the debt has been put on a declining path. Moreover, equal consideration shall be given to the reduction in this net cost resulting from the partial or total reversal of an above mentioned pension reformreversal of such a reform decided after [date of entry into force of this Regulation, to be inserted].
Amendment 224 #
Proposal for a regulation – amending act
Article 1 – point 2 a (new)
Article 1 – point 2 a (new)
Regulation (EC) No 1467/97
Section 1 a (new)
Section 1 a (new)
2a. The following Section is inserted: "SECTION 1a DIALOGUE ON MACRO-ECONOMIC AND BUDGETARY SURVEILLANCE"
Amendment 225 #
Proposal for a regulation – amending act
Article 1 – point 2 b (new)
Article 1 – point 2 b (new)
Regulation (EC) No 1467/97
Article 2 a (new)
Article 2 a (new)
2b. The following Article is inserted: "Article 2a In order to enhance the dialogue between the institutions of the Union, in particular the European Parliament, the Council, the Commission, and the Member States' parliaments and governments, or any other relevant body, and to ensure greater transparency and accountability, the competent committee of the European Parliament may conduct public debates and hearings, in particular regarding Article 126 (8) of the Treaty on the macro-economic and budgetary surveillance undertaken by the Council and the Commission."
Amendment 227 #
Proposal for a regulation – amending act
Article 1 – point 3 – point -a (new)
Article 1 – point 3 – point -a (new)
Regulation (EC) No 1467/97
Article 3 – paragraph 1
Article 3 – paragraph 1
(-a) paragraph 1 is amended as follows: 1. Within 10 days of the adoption by the Commission of a report issued in accordance with Article 126(3) of the Treaty, the Economic and Financial Committee shall formulate an opinion in accordance with Article 126(4) of the Treaty.
Amendment 237 #
Proposal for a regulation – amending act
Article 1 – point 3 – point c
Article 1 – point 3 – point c
Regulation (EC) No 1467/97
Article 3 – paragraph 4
Article 3 – paragraph 4
4. The Council recommendation made in accordance with Article 126(7) of the Treaty shall establish a deadline of six months at most for effective action to be taken by the Member State concerned. When warranted by the situation, the deadline for effective action could be reduced to three months. The Council recommendation shall also establish a deadline for the correction of the excessive deficit, which should be completed in the year following its identification unless there are special circumstances. In the recommendation, the Council shall request that the Member State achieves annual budgetary targets which, on the basis of the forecast underpinning the recommendation, are consistent with a minimum annual improvement of at least 0,5 % of GDP as a benchmark, in its cyclically adjusted balance net of one-off and temporary measures, in order to ensure the correction of the excessive deficit within the deadline set in the recommendation.
Amendment 240 #
Proposal for a regulation – amending act
Article 1 – point 3 – point d
Article 1 – point 3 – point d
Regulation (EC) No 1467/97
Article 3 – paragraph 4a
Article 3 – paragraph 4a
4a. Within the deadline of six month at most provided for in paragraph 4, the Member State concerned shall report to the Commission and the Council on action taken in response to the Council recommendation under Article 126(7) of the Treaty. The report shall include the targets for the government expenditure, namely the evolution of the public current expenditure, and for the discretionary measures on the revenue side consistent with the Council recommendation under Article 126(7) of the Treaty, as well as information on the measures taken and the nature of those envisaged to achieve the targets. The Commission may request additional reporting from the Member State. The report shall be made public.
Amendment 248 #
Proposal for a regulation – amending act
Article 1 – point 3 – point e
Article 1 – point 3 – point e
Regulation (EC) No 1467/97
Article 3 – paragraph 5
Article 3 – paragraph 5
5. If effective action has been taken in compliance with a recommendation under Article 126(7) of the Treaty and unexpected adverse economic events with major unfavourable consequences for government finances occur after the adoption of that recommendation, the Council may decide, on a recommendation from the Commission, to adopt a revised recommendation under Article 126(7) of the Treaty. The revised recommendation, taking into account the relevant factors mentioned in Article 2(3) of this Regulation, may notably extend the deadline for the correction of the excessive deficit by one year as a rule. The Council shall assess the existence of unexpected adverse economic events with major unfavourable consequences for government finances against the economic forecasts in its recommendation. TIn case of a severe economic downturn, the Council may also decide, on a recommendation from the Commission, to adopt a revised recommendation under Article 126(7) of the Treaty ion case of a severe economic downturn of a general naturethe condition that this does not endanger fiscal sustainability in the medium-term.
Amendment 251 #
Proposal for a regulation – amending act
Article 1 – point 4 – point -a (new)
Article 1 – point 4 – point -a (new)
Regulation (EC) No 1467/97
Article 4 – paragraph 1
Article 4 – paragraph 1
(-a) in Article 4, paragraph 1 is amended as follows: 1. Any Council decision to make public its recommendations, where it is established that no effective action has been taken in accordance with Article 126 (8) of the Treaty, shall be taken immediately after the expiry of the deadline set in accordance with Article 3 (4) of this Regulation. At the same time, the Council, on a proposal from the Commission, shall submit a formal report to the European Council.
Amendment 253 #
Proposal for a regulation – amending act
Article 1 – point 4
Article 1 – point 4
Regulation (EC) No 1467/97
Article 4 – paragraph 2
Article 4 – paragraph 2
2. The Council, when considering whether effective action has been taken in response to its recommendations made in accordance with Article 126(7) of the Treaty, shall base its decision on the report submitted by the Member State concerned in accordance with Article 3(4a) of this Regulation and its implementation as well as on any other publicly announced decisions by the Government of the Member State concerned. When the Council establishes, in accordance with Article 126(8), that the Member State concerned failed to take effective action, it shall report to the European Council. The European Commission may carry out on-site monitoring visits in accordance with Article 10a. For participating Member States, and Member States participating in the ERM II, such visits shall be carried out in liaison with the ECB. The Commission shall report to the Council and the European Parliament on the outcome of the visit and shall make its findings public.
Amendment 261 #
Proposal for a regulation – amending act
Article 1 – point 5 – point b
Article 1 – point 5 – point b
Regulation (EC) No 1467/97
Article 5 – paragraph 1a
Article 5 – paragraph 1a
1a. Following the Council notice given in accordance with Article 126(9) of the Treaty, the Member State concerned shall report to the Commission and the Council on action taken in response to the Council notice. The report shall include the targets for the government expenditure, namely the evolution of the current expenditure and for the discretionary measures on the revenue side as well as information on the actions being taken in response to the specific Council recommendations so as to allow the Council to take, if necessary, the decision in accordance with Article 6 (2) of this Regulation. The Commission shall monitor and evaluate adjustment measures taken to address the excessive deficit by means of a visit in accordance with Article 10a and prepare a report to the Council. This report shall be made public.
Amendment 269 #
Proposal for a regulation – amending act
Article 1 – point 5 – point c
Article 1 – point 5 – point c
Regulation (EC) No 1467/97
Article 5 – paragraph 2
Article 5 – paragraph 2
2. If effective action has been taken in compliance with a noticerecommendation under Article 126(97) of the Treaty and unexpected adverse economic events with major unfavourable consequences for government finances occur after the adoption of that noticerecommendation, the Council may decide, on a recommendation from the Commission, to adopt a revised noticerecommendation under Article 126(97) of the Treaty. The revised noticerecommendation, taking into account the relevant factors mentioned in Article 2(3) of this Regulation, may notably extend the deadline for the correction of the excessive deficit by one year as a rule. The Council shall assess the existence of unexpected adverse economic events with major unfavourable consequences for government finances against the economic forecasts in its notice. Trecommendation. In case of a severe economic downturn, the Council may also decide, on a recommendation from the Commission, to adopt a revised noticerecommendation under Article 126(97) of the Treaty ion case of a severe economic downturn of a general natureondition that this does not endanger fiscal sustainability in the medium-term.
Amendment 308 #
Proposal for a regulation – amending act
Article 1 – point 14
Article 1 – point 14
Regulation (EC) No 1467/97
Article 16
Article 16
Fines referred to in Article 12 of this Regulation shall constitute other revenue, as referred to in Article 311 of the Treaty, and shall be distributed among participating Member States which do not have excessive deficit as determined in accordance with Article 126(6) of the Treaty and which are not the subject of an excessive imbalance procedure within assigned to stability mechanisms to provide financial assistance, created by Member States whose currency is the euro in order to safeguard the stability of the euro area as a whole, notably the European Financial Stability Facility or any other mechaning of Regulation (EU) No […/…], in proportion to their share in the total grossm that may substitute this latter after its ndational income (GNI) of the eligible Member Statese of expiry.