Decision 2007/464 - 2007/464/EC: Council Decision of 5 June 2007 abrogating Decision 2005/186/EC on the existence of an excessive deficit in Malta

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Contents

  1. Current status
  2. Key information
  3. Key dates
  4. Legislative text
  5. Original proposal
  6. Sources and disclaimer
  7. Full version
  8. EU Monitor

1.

Current status

This decision has been published on July  6, 2007 and entered into force on June 14, 2007.

2.

Key information

official title

2007/464/EC: Council Decision of 5 June 2007 abrogating Decision 2005/186/EC on the existence of an excessive deficit in Malta
 
Legal instrument Decision
Number legal act Decision 2007/464
Original proposal SEC(2007)621 EN
CELEX number67 32007D0464

3.

Key dates

Document 05-06-2007
Publication in Official Journal 06-07-2007; OJ L 176 p. 19-20
Effect 14-06-2007; Entry into force Date notif.
End of validity 31-12-9999

4.

Legislative text

6.7.2007   

EN

Official Journal of the European Union

L 176/19
 

COUNCIL DECISION

of 5 June 2007

abrogating Decision 2005/186/EC on the existence of an excessive deficit in Malta

(2007/464/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 104(12) thereof,

Having regard to the recommendation from the Commission,

Whereas:

 

(1)

By Council Decision 2005/186/EC (1), following a recommendation from the Commission in accordance with Article 104(6) of the Treaty, it was decided that an excessive deficit existed in Malta. The Council noted that the general government deficit was 9,7 % of GDP in 2003, of which 2,9 % of GDP was due to a one-off operation, this being above the 3 % of GDP Treaty reference value, while general government gross debt stood at 72 % of GDP and was likely to further diverge from the 60 % of GDP Treaty reference value in 2004.
 

(2)

On 5 July 2004, in accordance with Article 104(7) of the Treaty and Article 3(4) of Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (2), the Council addressed a recommendation to Malta with a view to bringing the excessive deficit situation to an end by 2006 at the latest. The recommendation was made public.
 

(3)

In accordance with Article 104(12) of the Treaty, a Council Decision on the existence of an excessive deficit is to be abrogated when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected.
 

(4)

In accordance with the Protocol on the excessive deficit procedure annexed to the Treaty, the Commission provides the data for the implementation of the procedure. As part of the application of the Protocol, Member States are to notify data on government deficits and debt and other associated variables twice a year, namely before 1 April and before 1 October, in accordance with Article 4 of Council Regulation (EC) No 3605/93 of 22 November 1993 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community (3).
 

(5)

Based on data provided by the Commission (Eurostat) in accordance with Article 8g(1) of Regulation (EC) No 3605/93 following the notification by Malta before 1 April 2007 and on the Commission services’ spring 2007 forecast, the following conclusions are warranted:

 

—

The general government deficit was reduced from 10 % of GDP in 2003 to 2,6 % of GDP in 2006, which is below the 3 % of GDP deficit reference value. This is slightly better than the target set for 2006 in the January 2006 update of the convergence programme, although somewhat above the targets endorsed by the Council in its recommendation under Article 104(7),
 

—

More than half (around four percentage points) of the 7,4 percentage points of GDP reduction in the deficit ratio between 2003 and 2006 was accounted for by higher revenue, reflecting changes in indirect taxation as well as more efficient tax collection. A lower ratio of expenditure to GDP explains the remaining 3,5 percentage points, in part reflecting higher recourse to one-off operations, namely sales of land, which are conventionally recorded as negative expenditure. The expenditure ratio would have declined by less if the substantial one-off expenditure-increasing operation related to the restructuring of the shipyards of around 3 % of GDP in 2003 is excluded. In addition, expenditure restraint was achieved through downsizing and restructuring of public entities, restrictions in hiring in the public service and control in social payments.
 

—

One-off deficit-reducing operations averaged around 1 % of GDP between 2004 and 2006. Without one-offs (0,7 % of GDP), the 2006 deficit would have remained above...


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This text has been adopted from EUR-Lex.

5.

Original proposal

 

6.

Sources and disclaimer

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7.

Full version

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8.

EU Monitor

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  • 1. 
    OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p. 1).

     
  • 2. 
    OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p. 1).

     
  • 3. 
    The most recent notification of Malta can be found at:

     
  • 4. 
    OJ L 62, 9.3.2005, p. 21.

     
  • 5. 
    SEC(2004) 1630.

     
  • 6. 
    All EDP-related documents for Malta can be found at the following website:ec.europa.eu/economy_finance/about/activities/sgp

     
  • 7. 
    SEC(2004) 1630.

     
  • 8. 
    SEC(2004) 1630.

     
  • 9. 
    SEC(2004) 1630.

     
  • 10. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 11. 
    Eurostat News Release No 55 of 23 April 2007.

     
  • 12. 
    OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p. 5).

     
  • 13. 
    Deficit ratios are usually revised
     
  • 14. 
    SEC(2004) 1630.

     
  • 15. 
    Netting out the substantial one-off expenditure-increasing operation in 2003 of 2.9% of GDP related to the debt restructuring of the shipyards, would imply a lower decline in the expenditure ratio of 0.4 percentage points over the 2003-2006 period.

     
  • 16. 
    It should be underlined that there are significant difficulties in computing the output gap and the structural balance in many Member States especially the smaller ones like Malta, mainly due to the unavailability of all required data.

     
  • 17. 
    SEC(2004) 1630.

     
  • 18. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 19. 
    It is noted that, for 2008, the Maltese authorities plan deficit-reducing one-offs (sale of land) amounting to 0.2% of GDP.

     
  • 20. 
    SEC(2004) 1630.

     
  • 21. 
    OJ C 72, 29.3.2007, p. 9.

     
  • 22. 
    SEC(2004) 1630.

     
  • 23. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 24. 
    OJ L 62, 9.3.2005, p. 21.

     
  • 25. 
    All EDP-related documents for Malta can be found at the following website:ec.europa.eu/economy_finance/about/activities/sgp

     
  • 26. 
    SEC(2004) 1630.

     
  • 27. 
    SEC(2004) 580.

     
  • 28. 
    OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p. 5).

     
  • 29. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 30. 
    OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p. 1).

     
  • 31. 
    OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p. 5).

     
  • 32. 
    SEC(2004) 1630.

     
  • 33. 
    The expenditure ratio would have declined by less if the substantial one-off expenditure-increasing operation related to the restructuring of the shipyards of around 3% of GDP in 2003 is excluded.

     
  • 34. 
    OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p.

    1).

     
  • 35. 
    OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p.

    1).

     
  • 36. 
    The most recent notification of Malta can be found at:

     
  • 37. 
    OJ L 62, 9.3.2005, p. 21.

     
  • 38. 
    SEC(2004) 1630.

     
  • 39. 
    All EDP-related documents for Malta can be found at the following website:ec.europa.eu/economy_finance/about/activities/sgp

     
  • 40. 
    SEC(2004) 1630.

     
  • 41. 
    SEC(2004) 1630.

     
  • 42. 
    SEC(2004) 1630.

     
  • 43. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 44. 
    Eurostat News Release No 55 of 23 April 2007.

     
  • 45. 
    OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p.

    5).

     
  • 46. 
    Deficit ratios are usually revised
     
  • 47. 
    SEC(2004) 1630.

     
  • 48. 
    Netting out the substantial one-off expenditure-increasing operation in 2003 of 2.9% of GDP related to the debt restructuring of the shipyards, would imply a lower decline in the expenditure ratio of 0.4 percentage points over the 2003-2006 period.

     
  • 49. 
    It should be underlined that there are significant difficulties in computing the output gap and the structural balance in many Member States especially the smaller ones like Malta, mainly due to the unavailability of all required data.

     
  • 50. 
    SEC(2004) 1630.

     
  • 51. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 52. 
    It is noted that, for 2008, the Maltese authorities plan deficit-reducing one-offs (sale of land) amounting to 0.2% of GDP.

     
  • 53. 
    SEC(2004) 1630.

     
  • 54. 
    OJ C 72, 29.3.2007, p. 9.

     
  • 55. 
    SEC(2004) 1630.

     
  • 56. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 57. 
    OJ L 62, 9.3.2005, p. 21.

     
  • 58. 
    All EDP-related documents for Malta can be found at the following website:ec.europa.eu/economy_finance/about/activities/sgp

     
  • 59. 
    SEC(2004) 1630.

     
  • 60. 
    SEC(2004) 580.

     
  • 61. 
    OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p.

    5).

     
  • 62. 
    One-off transactions for 2006 and 2007 have been revised from the 2006 update convergence programme to take account of an operation (sale of land) that was finalised in 2007 and appropriately booked as deficit-reducing in that year.

     
  • 63. 
    OJ L 332, 31.12.1993, p. 7. Regulation as last amended by Regulation (EC) No 2103/2005 (OJ L 337, 22.12.2005, p.

    1).

     
  • 64. 
    OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p.

    5).

     
  • 65. 
    SEC(2004) 1630.

     
  • 66. 
    The expenditure ratio would have declined by less if the substantial one-off expenditure-increasing operation related to the restructuring of the shipyards of around 3% of GDP in 2003 is
     
  • 67. 
    Deze databank van de Europese Unie biedt de mogelijkheid de actuele werkzaamheden (workflow) van de Europese instellingen (Europees Parlement, Raad, ESC, Comité van de Regio's, Europese Centrale Bank, Hof van Justitie enz.) te volgen. EURlex volgt alle voorstellen (zoals wetgevende en begrotingsdossiers) en mededelingen van de Commissie, vanaf het moment dat ze aan de Raad of het Europees Parlement worden voorgelegd.
     
  • 68. 
    EUR-lex provides an overview of the proposal, amendments, citations and legality.