Explanatory Memorandum to COM(2009)365 - Amendment of Council Decision of 20 January 2009 providing Community medium term financial assistance for Latvia

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dossier COM(2009)365 - Amendment of Council Decision of 20 January 2009 providing Community medium term financial assistance for Latvia.
source COM(2009)365 EN
date 08-07-2009
Important legal notice

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52009PC0365

Proposal for a Council Decision Amending Council Decision of 20 January 2009 providing Community medium term financial assistance for Latvia /* COM/2009/0365 final */


[afbeelding - zie origineel document] COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 8.7.2009

COM(2009) 365 final

Proposal for a

COUNCIL DECISION

Amending Council decision of 20 January 2009 providing Community medium term financial assistance for Latvia

Proposal for a

COUNCIL DECISION

Amending Council decision of 20 January 2009 providing Community medium term financial assistance for Latvia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium term financial assistance for member States balance of payments and in particular Article 5, second subparagraph, in conjunction with Article 8 thereof,

Having regard to the proposal from the Commission made after consulting the Economic and Financial Committee (EFC),

Whereas:

By Decision 2009/289/EC, the Council decided to grant mutual assistance to Latvia. By Decision 2009/290/EC, the Council decided to provide medium term financial assistance for Latvia.

The scope and intensity of the financial crisis affecting Latvia calls for a revision of the economic policy conditions foreseen for the disbursement of the instalments of the Community financial assistance with a view to taking into account the fiscal effects entailed by the significant reduction of the GDP.

Council Decision 2009/290/EC should therefore be amended accordingly.

HAS ADOPTED THIS DECISION:

Article 1

Council Decision 2009/290/ EC is hereby amended as follows:

1. In Article 3(5), point (a) shall be replaced by the following:

"Implementation of a clearly-set medium-term fiscal program so as to bring the general government deficit below the Treaty reference value of 3% of GDP with a timeframe and consolidation path consistent with the Council recommendations to Latvia adopted under the excessive deficit procedure".

2. In Article 3(5), point (b) shall be replaced by the following:

"An implementation of the budget for 2009 and an adoption of the budget for 2010 with sustainable measures consistent with the consolidation path."

Article 2

This decision is addressed to the Republic of Latvia.

Article 3

This decision shall be published in the Official Journal of the European Union .

Done at Brussels,

For the Council,

The President