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EN
Official Journal of the European Union
9.1.2013
DECISIONS
COUNCIL DECISION
of 4 December 2012
amending Decision 2011/734/EU addressed to Greece with a view to reinforcing and deepening
fiscal surveillance and giving notice to Greece to take measures for the deficit reduction judged
necessary to remedy the situation of excessive deficit
(2013/6/EU)
THE COUNCIL OF THE EUROPEAN UNION,
recast, in the interest of clarity, on 12 July 2011, by
Council Decision 2011/734/EU ( 2 ). This decision was
amended for the first time on 8 November 2011 ( 3 ).
Having regard to the Treaty on the Functioning of the European
Union, and in particular Article 126(9) and Article 136 thereof,
(6) On
13
March
2012
( 4 ), following a recommendation
from the Commission, Decision 2011/734/EU was
Having regard to the recommendation from the European
again amended in a number of respects, including the
Commission,
fiscal adjustment path, while the deadline for remedying
the excessive deficit was kept unchanged. That Decision
Whereas:
confirmed the recommendation that Greece would have

to take measures to correct the situation of excessive
deficit by 2014 at the latest, by ensuring an
improvement in the structural balance of at least 10
(1) Article
136(1)(a)
of
the
Treaty
on
the
Functioning
of
the
European Union (TFEU) provides for the possibility of
percentage points of GDP over the 2009-2014 period.
adopting measures specific to the Member States whose
currency is the euro with a view to strengthening the
coordination and surveillance of their budgetary disci
(7) In
accordance
with
Article
5(2)
of
Council
Regulation
pline.
(EC) No 1467/97 of 7 July 1997 on speeding up and
clarifying the implementation of the excessive deficit
procedure ( 5 ), if effective action has been taken in
(2) Article
126
TFEU
establishes
that
Member
States
are
to
compliance with Article 126(9) TFEU and unexpected
avoid excessive government deficits and sets out the
adverse economic events with major unfavourable
excessive deficit procedure to that effect. The Stability
consequences for government finances occur after the
and Growth Pact, which in its corrective arm implements
adoption of that notice, the Council may decide, on a
the excessive deficit procedure, provides the framework
recommendation from the Commission, to adopt a
supporting government policies for a prompt return to
revised notice under Article 126(9) TFEU.
sound budgetary positions taking account of the
economic situation.
(8) Economic
activity
is
currently
projected
to
be
much
weaker than what was expected when the latest
(3) On
27
April
2009,
the
Council
decided,
in
accordance
amendment to Decision 2011/734/EU was adopted in
with Article 104(6) of the Treaty establishing the
March 2012. Both real and nominal GDP are expected
European Community, that an excessive deficit existed
to be at much lower levels in 2012 and 2013. The recent
in Greece.
revision of the Greek national accounts in October 2012
revealed a steeper contraction of real GDP, as compared
to the underlying figures in Decision 2011/734/EU.
(4) On
10
May
2010,
the
Council
adopted
Decision
According to the Commission services’ 2012 Autumn
2010/320/EU ( 1 ) addressed to Greece under Article 126(9)
Forecast, real GDP is projected to contract in 2012 by
and Article 136 TFEU with a view to reinforcing and
6,0 % and by a further 4,2 % in 2013 (against a
deepening Greece’s fiscal surveillance and giving it
contraction of 4,7 % and a stagnation at 0,0 % in
notice to take measures for the deficit reduction judged
Decision 2011/734/EU, for 2012 and 2013, respect
necessary to remedy the situation of excessive deficit at
ively), before growing by 0,6 % in 2014. This marked
the latest by 2014. The Council also set annual targets
worsening of the economic scenario implies a
for the government deficit.
corresponding deterioration of the outlook for public
finances given unchanged policies.
(5) Decision
2010/320/EU
was
substantially
amended
several
times. Since further amendments were to be made, it was
( 2 ) OJ L 296, 15.11.2011, p. 38.
( 3 ) Council Decision 2011/791/EU (OJ L 320, 3.12.2011, p. 28).
( 4 ) Council Decision 2012/211/EU (OJ L 113, 25.4.2012, p. 8).
( 1 ) OJ L 145, 11.6.2010, p. 6.
( 5 ) OJ L 209, 2.8.1997, p. 6.

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EN
9.1.2013 Official
Journal
of
the
European
Union L
4/41
(9)
In 2012, the general government deficit is expected to
debt-reducing measures considered by Greece should
have reached 6,9 % of GDP, well within the ceiling of a
improve the sustainability of the debt trajectory,
government deficit (based on the European System of
without altering the fiscal path for the primary surplus.
Accounts 1995, set up by Regulation (EC) No
Taking also into account a narrowing of the budget
2223/96 ( 1 )) of 7,3 % of GDP for 2012 established by
deficit and stronger nominal GDP growth resulting
Decision 2011/734/EU. In nominal terms, the 2012
from structural policy measures, the debt-to-GDP ratio
general government deficit is expected to have reached
is expected to peak in 2013. The debt-to-GDP ratio
EUR 13,4 billion, compared with a EUR 14,8 billion
would start declining from 2014 onwards to reach
deficit ceiling prescribed in Decision 2011/734/EU. The
below 160 % of GDP in 2016.
primary deficit, however, is expected to be slightly higher
than the targeted 1,0 % of GDP, largely because of the
deeper-than-expected recession. Greece is estimated to
have improved its structural deficit by 13,4 percentage
points of GDP from a 14,7 % deficit in 2009 to an
estimated 1,3 % deficit in 2012. Greece has thus
ensured an improvement in the structural balance in
the 2009-2012 period which is already larger than the
at least 10 percentage points of GDP over the 2009-
(11) Despite the effective action undertaken, the marked
2014 period recommended by the Council. On
worsening of the economic scenario implies a
11 November 2012, the budget for 2013 was adopted
corresponding deterioration of the outlook for public
by the Greek Parliament that is expected to bring savings
finances given unchanged policies and makes it difficult
of more than EUR 9,2 billion, over 5 % of GDP. The
to complete the correction of the excessive deficit by
2013 budget forms part of the 2013-2016 medium-
2014, as requested by the Council in Decision
term fiscal strategy (‘MTFS’) that was adopted by the
2011/734/EU. Given the adverse economic events, an
Greek Parliament a few days earlier on 7 November
extension of the deadline for the adjustment period is
2012. The MTFS and the relevant legislation to
warranted. In particular, the deadline that was set in
implement it set out a very sizeable and front-loaded
the Council Decision needs to be extended by two
fiscal consolidation amounting to over 7 % of GDP by
years to 2016. Under a revised Economic Adjustment
2016, with a comprehensive set of structural measures
Programme path, the primary balance targets should be
underlying a substantial fiscal consolidation. Taking into
set at 0 %, 1,5 %, 3 % and 4,5 % of GDP respectively for
account these developments, the policy conditionality in
the 2013-2016 period. The revised path means that the
the Memorandum of Understanding on the economic
general government budget deficit will fall below 3 % of
adjustment programme of Greece needs to be updated.
GDP in 2016. The debt-reducing measures to be imple
The commitment undertaken by Greece concerns not
mented in December 2012 could reduce interest
only the fiscal consolidation measures, but also those
payments by up to 1 % of GDP, making it possible to
measures needed to enhance growth and to minimise
bring the budget deficit below 3 % of GDP already in
any negative social impact. Overall, therefore, Greece
2015. These numbers could be estimated to translate
has taken effective action in 2012 to reduce its deficit
into an improvement in the cyclically-adjusted primary
in compliance with Decision 2011/734/EU.
balance to GDP ratio from 4,1 % in 2012 to 6,2 % in
2013 and at least 6,4 % of GDP in 2014, 2015 and
2016 and into a cyclically-adjusted government deficit
to GDP ratio at – 1,3 % in 2012, 0,7 % in 2013,
0,4 % in 2014, 0,0 % in 2015 and – 0,4 % in 2016,
reflecting the original profile of interest payments.
Notwithstanding the extension of the deadline for
remedying the excessive deficit, however, the fiscal
effort needed to achieve the target remains very large
(10) The
general
government
consolidated
debt
was
expected
in 2013-2014, and heavily frontloaded. This revision of
in the Commission Autumn 2012 forecast to decline by
the deadline will therefore maintain the credibility of the
EUR 11,1 billion in 2012, against EUR 26,95 billion set
economic adjustment programme, while considering the
in Decision 2011/734/EU. This is due to lower-than-
economic and social impact of the consolidation and the
expected privatisation receipts, a lower-than-expected
need to maintain confidence in the capacity of the Greek
consolidation of government debt and worse-than-
Government to address the fiscal challenge.
expected cash-accruals and other interest adjustments.
Owing to a lower nominal GDP following the statistical
data revision and in light of worse macroeconomic pros
pects, the debt-to-GDP ratio would rise to 176,7 %,
before agreed initiatives by Member States whose
currency is the euro and certain debt-reducing measures
considered by Greece are implemented in December
2012, which would reduce the debt to slightly above
160 % of GDP by the end of 2012. These measures
(12) Each
measure
required
by
this
Decision
is
instrumental
in
should improve the sustainability of debt, and certain
achieving the required budgetary adjustment. Some
measures have a direct impact on the budgetary
situation of Greece, while the others are structural
( 1 ) Council Regulation (EC) No 2223/96 of 25 June 1996 on the
European system of national and regional accounts in the
measures that will result in improved fiscal governance
Community (OJ L 310, 30.11.1996, p. 1).
and a sounder budgetary situation in the medium term.

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L 4/42
EN
Official Journal of the European Union
9.1.2013
(13) The
very
severe
deterioration
of
the
financial
situation
of
beyond those which would accrue from the ELA
the Greek Government has led the Member States whose
guarantee fee structure existing on 30 September 2012.
currency is the euro to decide to provide stability support
to Greece, with a view to safeguarding the financial
stability of the euro area as a whole, in conjunction
3. The
adjustment
path
referred
to
in
paragraph
2,
taking
with multilateral assistance provided by the International
into account the impact of debt-reducing measures to be
Monetary Fund. Since March 2012, support provided by
implemented in December 2012, would be consistent with
the Member States whose currency is the euro takes the
a general government consolidated debt ratio to GDP of
form of both a bilateral Greek loan facility and a loan
below 160 % in 2016.’;
from the European Financial Stability Facility. The lenders
have decided that their support shall be conditional on
(2) in Article 2, the following paragraph is inserted:
Greece complying with Decision 2011/734/EU, as
amended by this Decision. In particular, Greece is
expected to carry out the measures specified in this
‘10a. Greece
shall
have
adopted
the
following
measures
Decision in accordance with the calendar set out herein,
by 4 December 2012:
(a) the budget for 2013 and the MTFS through 2016, as
HAS ADOPTED THIS DECISION:
well as the measures as described in Annex IA to this
Decision and the respective implementing legislation.
The MTFS shall elaborate on the permanent fiscal
Article 1
consolidation measures which ensure that the deficit
ceilings for 2012-2016, as established by this
Decision 2011/734/EU is hereby amended as follows:
Decision, are not exceeded and that the debt-to-GDP
ratio is put on a sustainable downward path;
(1) Article 1 is replaced by the following:
(b) the presentation of an updated Privatisation Plan to the
Greek Parliament and the publication of a semi-annual
update of the Asset Development Plan;
‘Article 1
1. Greece
shall
put
an
end
to
the
present
excessive
deficit
(c) the transfer to the portfolio of privatisation assets of the
situation as rapidly as possible and, at the latest, by the
HRADF of the full and direct ownership (shares or
deadline of 2016.
concession rights) of Egnatia Motorway and the
regional ports of Elefsina, Lavrio, Igoumenitsa, Alex
androupolis, Volos, Kavala, Corfu, Patras, Heraklion,
2. The
adjustment
path
towards
the
correction
of
the
and Rafina;
excessive deficit shall aim to achieve a general government
primary deficit (deficit excluding interest expenditure) not
(d) ensuring the line Ministries and other relevant entities
exceeding EUR 2 925 million (1,5 % of GDP) in 2012,
provide the General Secretariat for Public Property with
and general government primary surpluses of at least EUR
full access to the inventory of all real estate assets
0 million (0,0 % of GDP) in 2013, EUR 2 775 million
owned by the State;
(1,5 % of GDP) in 2014, EUR 5 700 million (3,0 % of
GDP) in 2015 and EUR 9 000 million (4,5 % of GDP) in
2016. These targets for the primary deficit/surplus imply an
(e) the amendment and/or the repeal of statutory
overall ESA-government deficit of 6,9 % of GDP in 2012,
provisions of State-owned enterprises (PPC, OLP and
5,4 % of GDP in 2013, 4,5 % of GDP in 2014, 3,4 % of
OLTH port authorities, HELPE, EYATH and EYDAP,
GDP in 2015 and 2,0 % of GDP in 2016. The debt-
ports, etc.) that diverge from private company law
reducing measures to be implemented in December 2012
regarding any restrictions on voting rights of private
could reduce interest payments by up to 1 % of GDP. These
shareholders;
numbers could be estimated to translate into an
improvement in the cyclically-adjusted primary balance to
(f) legislation to define the role and qualifications of the
GDP ratio from 4,1 % in 2012 to 6,2 % in 2013 and at
Secretary-General of the Tax Administration and for the
least 6,4 % of GDP in 2014, 2015 and 2016 and into a
Minister of Finance to delegate decision-making powers
cyclically-adjusted government deficit to GDP ratio at
to the Secretary-General of the Tax Administration;
– 1,3 % in 2012, 0,7 % in 2013, 0,4 % in 2014, 0,0 % in
2015 and – 0,4 % in 2016, reflecting the original profile of
interest payments. Proceeds from the privatisation of
(g) the deployment of experienced tax auditors towards
financial and non-financial assets, transactions relating to
activities serving the immediate revenue imperatives,
bank recapitalisations, as well as all transfers related to
by strengthening and making fully operational key
the Eurogroup decision of 21 February 2012 with regard
enforcement areas such as the large taxpayer unit by
to income of euro zone national central banks, including
transferring 100 auditors from other duties, and by
the Bank of Greece, stemming from their investment
establishing a single functional unit for high-wealth indi
portfolio holdings of Greek Government bonds shall not
viduals and high-income self-employed persons and
reduce the required fiscal consolidation effort and shall
staffing this unit with 50 experienced tax auditors
not be counted in the assessment of these targets. The
directly accountable to the Secretary-General of the
same applies to any payments from loss-making banks
Tax Administration;

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9.1.2013 Official
Journal
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the
European
Union L
4/43
(h) a Council of Ministers act (replacing the Council of
moving medicines from the positive to the negative and
Ministers act adopted on 29 October 2012), aiming at
over-the-counter lists and by introducing the reference
strengthening budget execution and enhancing sound
price system developed by the National Organisation for
fiscal management, and including, beyond the
Medicines (EOF). These lists must be updated at least
provisions in the original Council of Ministers act,
twice a year in line with Council Directive 89/105/EEC;
additional provisions: (i) establishing that Memoranda
and (iv) the substitution of prescribed medicines by the
of Cooperation are signed by end-December of each
lowest–priced product of the same active substance in
year between the Ministry of Finance and the other
the reference category by pharmacies (compulsory
Ministries or between the Ministries and managers of
“generic substitution”).’;
the supervised entities (thus covering the entire general
government); (ii) strengthening the current balanced
budget constraints for local governments in order for
(3) in Article 2, paragraph 11 is replaced by the following:
them to be more effective, including corrective and
sanctioning mechanisms; (iii) strengthening the current
monitoring system for State-owned enterprises (SOEs)
and introducing an enforcement mechanism in case of
‘11. Greece
shall
adopt
the
following
measures
by
the
deviations from the specific targets identified for each
end of December 2012:
SOE; and (iv) setting the framework for defining specific
targets for the coverage of operational commitment
registers for local governments and SOEs to be estab
(a) a tax reform of personal income tax and corporate
lished by December of each year. That Council of
income tax that aims at simplifying the tax system,
Ministers act shall also include mechanisms for
broadening the tax base and eliminating exemptions
correcting transfers from central government to
and preferential regimes;
address deviations from targets within the year and
possibly in the following years, while ensuring that
arrears are not increasing; it shall make explicit that
(b) the necessary primary and secondary legislation to
the proceeds from the privatisation of government
ensure the swift implementation of the Privatisation
assets are paid directly into a segregated account to
Plan;
monitor cash flows, avoid diversion of official
financing and secure a timely debt servicing; and it
shall set automatic cuts in expenditure to be applied
as a rule when targets are missed, while ensuring that
(c) the establishment of a regulatory framework for water
arrears do not increase;
companies;
(i) a set of measures to improve the current financial
(d) measures to improve the tax administration, introducing
situation of the National Organisation for Healthcare
performance assessments, improving the use of risk
Provision (EOPYY) and ensure that budgetary
assessment techniques, and establishing and reinforcing
execution is closer to a balanced budget in 2012 and
specialist debt management units;
2013, including: (i) streamlining the benefit package; (ii)
increasing cost-sharing for healthcare delivered by
private providers; (iii) negotiating price-volume
(e) the preparation and publication of a plan for the
agreements and revising case-mix agreements with
clearance of arrears owed to suppliers by public
private providers; (iv) revising the fees for, and
entities and of tax refunds;
number of, diagnostic and physiotherapy services
contracted by EOPYY to private providers with the
aim of reducing related costs by at least EUR
(f) the finalisation of the implementation of the reform of
80 million in 2013; (v) introducing a reference price
the functioning of secondary/supplementary public
system for the reimbursement of medical devices; and
pension funds; and the unification of all existing funds
(vi) progressively increasing the contributions paid by
in the public sector;
OGA members to the average of those paid by other
members of EOPYY;
(g) legislation to extend the application of the 5 % rebate
on pharmaceutical companies (which exists for hospital-
(j) the following measures relating to the reimbursement of
priced medicines) to all products sold in EOPYY phar
medicines: (i) legislation to control pharmaceutical
macies;
spending that activates contingency measures (including
e.g. an across-the-board cut in prices), if for any reason
the existing automatic claw-back mechanism is not
sufficient to achieve the target; such measures shall
(h) an increase of the share of generic medicines to 35 % of
produce an equivalent amount of savings; (ii) a minis
the overall volume of medicines sold by pharmacies;
terial decree, setting the new claw-back threshold for
2013 (EUR 2,44 billion for outpatients); (iii) updating
the price list and the positive list of reimbursable medi
(i) the assignment of internal controllers to all hospitals
cines, particularly by establishing the reimbursement of
and the adoption by all hospitals of commitment
only cost effective packages for chronic diseases, by
registers.’;

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L 4/44
EN
Official Journal of the European Union
9.1.2013
(4) the following paragraphs are added to Article 2:
13. Greece
shall
adopt
the
following
measures
by
the
end of June 2013:
‘12. Greece
shall
adopt
the
following
measures
by
the
end of March 2013:
(a) achieve the target of making 2 000 tax auditors fully
operational;
(a) issue a Ministerial Decree for the adjustment of end-user
(b) adopt a new Tax Procedures Code;
prices for low-voltage customers;
(c) ensure the e-procurement platform is ready for use by
(b) update the MTFS, including by setting binding 3-year
all central purchasing bodies.
expenditure ceilings for government subsectors;
14. Greece
shall
adopt,
by
the
end
of
September
2013,
(c) adopt staffing plans for line Ministries;
the necessary legislation with a view to introducing a
structural balanced budget rule with an automatic
correction mechanism.’;
(d) establish a significantly more autonomous tax adminis
tration and specify the degree of autonomy, governance
(5) the text appearing in the Annex to this Decision is inserted
framework, accountability, legal powers of the head of
as Annex IA.
the tax administration and the initial staffing of the
organisation;
Article 2
This Decision shall take effect on the day of its notification.
(e) issue and make public a new fully-fledged anti-
corruption plan for the civil service, including special
Article 3
provisions for the tax and customs administration;
This Decision is addressed to the Hellenic Republic.
(f) make fully operational a standard procedure for revision
of legal values of real estate to better align them with
market prices under the responsibility of the Directorate
Done at Brussels, 4 December 2012.
of Capital Taxation;
For the Council
(g) transfer 40 new real estate assets (identified as “real
estate assets lots 2 and 3” in the Privatisation Plan) to
The President
the HRADF.
V. SHIARLY

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EN
9.1.2013 Official
Journal
of
the
European
Union L
4/45
ANNEX
‘ANNEX IA
MEDIUM-TERM FISCAL STRATEGY 2013-16 MEASURES
The additional measures included in the medium-term fiscal strategy (MTFS) through 2016 are the following:
1. Rationalisations in the wage bill by at least EUR 1 110 million in 2013 and by an additional EUR 259 million in
2014.
2. Savings in pensions of at least EUR 4 800 million in 2013 and of an additional EUR 423 million in 2014.
3. Cuts in the State’s operational expenditure by at least EUR 239 million in 2013 and by an additional
EUR 285 million in 2014.
4. Savings from rationalisation and efficiency improvements in education-related expenses of at least EUR 86 million in
2013 and of an additional EUR 37 million in 2014.
5. Savings in State-owned enterprises of at least EUR 249 million in 2013 and of an additional EUR 123 million in
2014.
6. Cuts in operational defence-related expenditure producing savings by at least EUR 303 million in 2013 and by an
additional EUR 100 million in 2014.
7. Savings in healthcare and pharmaceutical expenditure of at least EUR 455 million in 2013 and of an additional
EUR 620 million in 2014.
8. Savings from the rationalisation of social benefits of at least EUR 217 million in 2013 and of an additional
EUR 78 million in 2014.
9. Cuts in State transfers to local governments by at least EUR 50 million in 2013 and by an additional
EUR 160 million in 2014.
10. Cuts in expenditure by the public investment budget (domestically-financed public investment) by EUR 150 million
in 2013 and by an additional 150 million in 2014.
11. An increase in revenues of at least EUR 1 689 million in 2013 and of an additional EUR 1 799 million in 2014.’.

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