HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 113/8
EN
Official Journal of the European Union
25.4.2012
DECISIONS
COUNCIL DECISION
of 13 March 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
(2012/211/EU)
THE COUNCIL OF THE EUROPEAN UNION,
(6) Economic
activity
in
2011-2014
is
currently
estimated
and projected to be much weaker than had been
Having regard to the Treaty on the Functioning of the European
expected when Decisions 2010/320/EU and
Union, and in particular Article 126(9) and Article 136 thereof,
2011/734/EU were adopted. Economic activity is
estimated to have contracted in 2011 by 6,9
%.
Currently, the Commission forecasts the real Greek
Having regard to the recommendation from the European
GDP to contract by 4,7 % in 2012, and to stagnate in
Commission,
2013, before resuming growth of 2,5 % in 2014. In
nominal terms, GDP contracted by 5,2 % in 2011, and
Whereas:
is expected to contract by 5,4 % and 0,4 % in 2012 and
2013, respectively, before expanding by 2,5 % in 2014.
(1) Article
136(1)(a)
of
the
Treaty
on
the
Functioning
of
the
European Union (TFEU) foresees the possibility of
(7) In
February
2012,
the
Greek
government
announced
adopting measures specific to the Member States whose
measures aimed at reducing the primary deficit in
currency is the euro with a view to strengthening the
2012, including the adoption of a supplementary
coordination and surveillance of their budgetary disci
budget. Extensive discussions on these measures have
pline.
taken place between the Hellenic authorities and the
Commission services. These discussions have considered
not only the fiscal consolidation measures, but also the
(2) Article
126
TFEU
establishes
that
Member
States
are
to
need to enhance the growth-friendly nature of these
avoid excessive government deficits and sets out the
measures and to minimise any social impact.
excessive deficit procedure to that effect. The Stability
and Growth Pact, which in its corrective arm implements
the excessive deficit procedure, provides the framework
(8) In
March
2012,
Greece
launched
and
executed
a
debt
supporting government policies for a prompt return to
exchange operation which substantially reduces the
sound budgetary positions taking account of the
debt level and interest expenditure in 2012 and in the
economic situation.
next years, and contributes to the sustainability of
government debt.
(3) On
27
April
2009,
the
Council
decided,
in
accordance
with Article 104(6) of the Treaty establishing the
(9)
In the light of the above considerations, it appears appro
European Community (TEC), that an excessive deficit
priate to amend Decision 2011/734/EU in a number of
existed in Greece.
respects, including the fiscal adjustment path, while
keeping unchanged the deadline for the correction of
(4) On
10
May
2010,
the
Council
adopted
Decision
the excessive deficit,
2010/320/EU ( 1 ) addressed to Greece under Article 126(9)
and Article 136 TFEU with a view to reinforcing and
deepening the fiscal surveillance and giving notice to
HAS ADOPTED THIS DECISION:
take measures for the deficit reduction judged necessary
to remedy the situation of excessive deficit at the latest
Article 1
by 2014. The Council established 2014 as the deadline
for correcting the situation of excessive deficit, and
Decision 2011/734/EU is hereby amended as follows:
annual targets for the government deficit.
(1) in Article 1, paragraphs 2 and 3 are replaced by the
(5) Decision
2010/320/EU
was
substantially
amended
several
following:
times. Since further amendments were to be made, it was
recast, on 12 July 2011, by Decision 2011/734/EU ( 2 ) in
the interests of clarity.
‘2. The
adjustment
path
towards
the
correction
of
the
excessive deficit shall aim to achieve a general government
( 1 ) OJ L 145, 11.6.2010, p. 6.
primary deficit (deficit excluding interest expenditure) not
( 2 ) OJ L 296, 15.11.2011, p. 38.
exceeding EUR 2 037 million (1,0 % of GDP) in 2012,

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EN
25.4.2012 Official
Journal
of
the
European
Union L
113/9
and primary surpluses of at least EUR 3 652 million (1,8 %
budget will not have any impact on projects that are
of GDP) in 2013 and EUR 9 352 million (4,5 % of GDP) in
co-financed by structural funds (including TEN-T
2014. Following the debt exchange, these targets for the
projects);
primary deficit/surplus are consistent with an overall
deficit of EUR 14 811 million (7,3 % of GDP) in 2012,
(i) changes in supplementary pension funds and pension
EUR 9 462 million (4,7 % of GDP) in 2013 and EUR
funds with high average pensions or which receive high
4 499 million (2,2 % of GDP) in 2014. To this aim, an
subsidies from the budget, and cuts in other high
improvement in the structural balance of at least 10 % of
pensions, with the aim of saving at least EUR
GDP will have been achieved over the period 2009-2014.
450 million in 2012 (net after taking into account
Proceeds from the privatisation of assets (financial and non-
the impact on taxes and social contributions);
financial assets), as well as all transfers related to the
Eurogroup decision of 21 February 2012 with regard to
(j) cuts
in
family
allowances
for
high-income
households,
the income of euro zone national central banks, including
with the aim of saving EUR 43 million in 2012;
the Bank of Greece, stemming from their investment
portfolio holdings of Greek government bonds shall not
reduce the required fiscal consolidation effort and shall
(k) ministerial decisions to complete the full implemen
not be counted in the assessment of these targets.
tation of the new wage grid in all the pertinent
entities, and legislation on the modalities for the
recovery of wages paid in excess as from November
3. The
adjustment
path
referred
to
in
paragraph
2
is
2011;
consistent with an annual change in the general government
consolidated debt of EUR - 26 954 million in 2012, of EUR
(l) the amendment of Articles 3 and 21 of Law
6 775 million in 2013 and of EUR 1 492 million in 2014.’;
4038/2012 so that the conditions to extend the
instalment plans for overdue taxes and social
(2) in Article 2, the following paragraph is inserted:
contributions are revised: instalment plans will only
apply to existing overdue amounts below EUR
10 000 for individuals and EUR 75 000 for corpor
‘7a. Greece
shall
adopt
the
following
measures
without
ations. Tax payers applying for an extended instalment
delay:
plan should disclose all their financial statements to the
tax authorities;
(a) a reduction in pharmaceutical expenditure by at least
EUR 1 076 million in 2012;
(m) a framework law, with an in-depth revision of the
functioning of secondary/supplementary public
(b) a reduction in overtime pay for doctors in hospitals by
pension funds aimed at stabilising pension expenditure,
at least EUR 50 million in 2012;
guaranteeing the budgetary neutrality of these schemes,
and ensuring medium- and long-term sustainability of
the system.’;
(c) a reduction in the procurement of military material by
EUR 300 million (cash and deliveries) in 2012;
(3) in Article 2, paragraph 8 is amended as follows:
(d) a reduction by 10 % in the remuneration of elected and
(a) points (a) and (b) are replaced by the following:
related staff at local level in 2012 and a reduction in
the number of deputy mayors and associated staff in
‘(a) a reform of the secondary/supplementary pension
2013 with the aim of saving at least EUR 9 million in
schemes designed in consultation with the
2012 and an additional EUR 28 million in 2013;
European Commission, the European Central Bank
and the International Monetary Fund, and validated
(e) a reduction in the central government’s operational
by the Economic Policy Committee as regards its
expenditure, and election-related spending, by at least
estimated impact on long-term sustainability. The
EUR 370 million (compared to the 2012 budget), of
parameters of the new secondary notional
which at least EUR 100 million in military-related oper
defined-contribution system ensure long-term
ational expenditure, and at least EUR 70 million in
actuarial balance, as assessed by the National
electoral spending;
Actuarial Authority;
(b) an adjustment of pharmacies’ profit margins and
(f) a reduction in operational expenditure by local
the introduction of regressive profit margins with
government with the aim of saving at least EUR
the aim of reducing the overall profit margin to
50 million in 2012;
below 15 %.’;
(g) cuts in subsidies to residents in remote areas, and cuts
(b) the following points are added:
in grants to several entities supervised by the ministries,
with the aim of reducing expenditure in 2012 by at
‘(g) the finalisation of the on-going functional review
least EUR 190 million;
on social programmes;
(h) a reduction in the public investment budget (PIB) by
(h) appointment of the members of the Single Public
EUR 400 million in 2012. This reduction in the PIB
Procurement Authority (SPPA);

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L 113/10
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Official Journal of the European Union
25.4.2012
(i) the identification of the schemes for which lump
deliver savings of at least EUR 205 million (net after
sums paid on retirement are out of line with
taking into account the impact on taxes and social
contributions paid, and adjustment of the
contributions);
payments;
(f) decisions to provide for the Implementing Regulation
(j) a reduction of the pharmaceutical wholesalers’
of the SPPA; the SPPA starts its operations to fulfil its
profit margins to converge to a 5 % upper limit;
mandate, objectives, competences and powers as
defined in the law on the SPPA and the Action Plan
(k) the necessary tendering procedures to implement a
agreed with the European Commission in November
comprehensive and uniform health care
2010.’;
information system (e-health system);
(5) in Article 2, the following paragraphs are added:
(l) the
appointment
of
all
legal,
technical
and
financial
advisors for the privatisations planned for 2012
’10. Greece
shall
adopt
the
following
measures
by
the
and 2013.’;
end of September 2012:
(4) in Article 2(9), point (a) is replaced by the following:
(a) a draft budget for 2013 in line with the primary surplus
target established in Article 1(2);
‘(a) the finalisation of the review of public spending
programmes. This review shall draw on external
(b) rules and procedures for centralised purchasing/
technical assistance and focus on pensions and social
framework contracts for frequently purchased supplies
transfers (in a manner that will preserve basic social
or services at central government level with the
protection), defence spending without prejudice to the
obligation for ministries and central government
defence capability of the country and restructuring of
bodies to source via these contracts and optional use
central and local administrations; a further rational
for regional entities.
isation of pharmaceutical spending and operational
spending of hospitals, and of welfare cash benefits,
11. Greece
shall
adopt
the
following
measures
by
the
will also be specified;
end of December 2012:
(b) the adoption of a tax reform simplifying the tax system,
(a) the final adoption of the budget for 2013 in line with
eliminating exemptions and preferential regimes,
the primary surplus target established in Article 1(2);
including broadening bases, thus allowing a gradual
reduction in tax rates as revenue performance
(b) legislation streamlining the procedure for submission
improves. This reform relates to the personal income
and approval of supplementary budgets.’.
tax, corporate income tax and VAT, property taxes, as
well as social contributions, and will maintain the
relative tax burden from indirect taxes;
Article 2
This Decision shall take effect on the day of its notification.
(c) the revision of the legal values of real estate to better
align them with market prices;
Article 3
This Decision is addressed to the Hellenic Republic.
(d) the discontinuation of payments in cash and cheque in
tax offices which should be replaced by bank transfers,
so that staff time is freed-up to focus on more value
added work (audit, collection enforcement and taxpayer
Done at Brussels, 13 March 2012.
advice);
For the Council
(e) a reduction by 12 %, on average, in the “special wages”
of the public sector, to which the new wage grid does
The President
not apply. This will apply as from 1 July 2012 and
M. VESTAGER

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