8.3.2007   

EN

Official Journal of the European Union

L 68/3

(1)

By Decision 2003/487/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 France. The Council noted that the general government deficit was 3,1 % of GDP in 2002, above the 3 % of GDP Treaty reference value, and projected both by the French authorities and the Commission services to be above 3 % in 2003, while the general government gross debt stood at 58,2 % of GDP, and was very likely to breach the 60 % Treaty reference value in 2003.

(2)

On 3 June 2003, 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) (EDP), the Council made a recommendation, based on a recommendation from the Commission, addressed to France with a view to bringing the excessive deficit situation to an end by 2004. The recommendation was made public.

(3)

In October 2003, the Commission considered that the measures taken by France had been insufficient to comply with the recommendation of 3 June 2003 and recommended that the excessive deficit procedure be stepped up. Instead, on 25 November 2003, the Council adopted conclusions addressing recommendations to France for the correction of the deficit by 2005, which were annulled by the Court of Justice of the European Communities on 13 July 2004 (3). On 14 December 2004, the Commission adopted a Communication to the Council which concluded that 2005 should be considered as the relevant deadline for the correction. It also concluded that actions taken by France until then were broadly consistent with a correction of the excessive deficit by 2005, based on an adjustment in cyclically adjusted terms of some 1 % of GDP over 2004 and 2005. On 18 January 2005, the Council concurred with this view.

(4)

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.

(5)

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 this 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 (4).

(6)

Based on data provided by the Commission (Eurostat) in accordance with Article 8g(1) of Regulation (EC) No 3605/93 following the notification by France before 1 October 2006 and on the Commission services' autumn 2006 forecast, the following conclusions are warranted:

(7)

In the view of the Council, the excessive deficit in France has been corrected and Decision 2003/487/EC should therefore be abrogated,