(1)

On 2 December 2009, by Decision 2010/285/EU (1), following a proposal from the Commission in accordance with Article 126(6) of the Treaty, the Council decided that an excessive deficit existed in Germany. The Council noted that the general government deficit planned for 2009 was 3,7 % of GDP, thus above the 3 % of GDP Treaty reference value, while the general government gross debt was planned to reach 74,2 % of GDP in 2009, thus above the 60 % of GDP Treaty reference value (2).

(2)

On 2 December 2009, in accordance with Article 126(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 (3), the Council, based on a recommendation from the Commission, addressed a recommendation to Germany with a view to bringing the excessive deficit situation to an end by 2013 at the latest. The recommendation was made public.

(3)

Article 4 of the Protocol on the excessive deficit procedure annexed to the Treaties requires that the Commission provide 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 3 of Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community (4).

(4)

When considering whether a decision on the existence of an excessive deficit should be abrogated, the Council should take a decision on the basis of notified data. Moreover, a decision on the existence of an excessive deficit should be abrogated only if the Commission forecasts indicate that the deficit will not exceed the 3 % of GDP threshold over the forecast horizon (5).

(5)

Based on data provided by the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009 following the notification by Germany before 1 April 2012 and on the Commission services 2012 spring forecast, the following conclusions are justified:

(6)

In accordance with Article 126(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.

(7)

The Council recalls that, starting in the year following the correction of its excessive deficit, Germany is in a transition period of three years (2012-2014), in which the requirement under the debt criterion is to be considered fulfilled if the country makes sufficient progress towards compliance with the debt reduction benchmark, in accordance with Article 2(1a) of Regulation (EC) No 1467/97. The fiscal adjustment planned by Germany in its stability programme is consistent with sufficient progress towards compliance with the debt reduction benchmark at the end of the transition.

(8)

In the view of the Council, the excessive deficit in Germany has been corrected and Decision 2010/285/EU should therefore be abrogated,