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11.7.2012 Official
Journal
of
the
European
Union L
179/17
COUNCIL DECISION
of 22 June 2012
abrogating Decision 2010/285/EU on the existence of an excessive deficit in Germany
(2012/369/EU)
THE COUNCIL OF THE EUROPEAN UNION,
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
Having regard to the Treaty on the Functioning of the European
forecasts indicate that the deficit will not exceed the
Union, and in particular Article 126(12) thereof,
3 % of GDP threshold over the forecast horizon ( 5 ).
Having regard to the recommendation from the European
(5) Based
on
data
provided
by
the
Commission
(Eurostat)
in
Commission,
accordance with Article 14 of Regulation (EC) No
479/2009 following the notification by Germany
before 1 April 2012 and on the Commission services
Whereas:
2012 spring forecast, the following conclusions are
justified:
(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
— Having stood at 3,2 % of GDP in 2009 and 4,3% of
Council decided that an excessive deficit existed in
GDP in 2010, the general government deficit in
Germany. The Council noted that the general
Germany has been brought down to 1 % of GDP in
government deficit planned for 2009 was 3,7 % of
2011, thus below the 3 % reference value, two years
GDP, thus above the 3 % of GDP Treaty reference
ahead of the deadline set by the Council. This
value, while the general government gross debt was
improvement was driven by favourable cyclical
planned to reach 74,2 % of GDP in 2009, thus above
conditions, the robust labour market, the phasing-
the 60 % of GDP Treaty reference value (
out of stimulus measures, fiscal consolidation efforts

2 ).
and the fading-out of the one-off impact of financial
sector stabilisation measures on the deficit in the
(2) On
2
December
2009,
in
accordance
with
Article
126(7)
previous year.
of the Treaty and Article 3(4) of Council Regulation (EC)
No 1467/97 of 7 July 1997 on speeding up and clar
ifying the implementation of the excessive deficit
— The German 2012 Stability Programme plans for the
procedure ( 3 ), the Council, based on a recommendation
deficit to remain at 1 % of GDP in 2012 and to drop
from the Commission, addressed a recommendation to
to % of GDP in 2013, which is broadly in line with
Germany with a view to bringing the excessive deficit
the Commission services forecast of a deficit of 0,9 %
situation to an end by 2013 at the latest. The recom
of GDP in 2012 and 0,7 % of GDP in 2013. Thus,
mendation was made public.
the deficit is set to remain well below the reference
value of 3 % of GDP. In addition, according to the
Commission services’ forecast, the cyclically adjusted
(3) Article 4 of the Protocol on the excessive deficit
budget deficit, net of one-off and other temporary
procedure annexed to the Treaties requires that the
measures, will be 0,4 % of GDP in 2012 and 0,3 %
Commission provide the data for the implementation
of GDP in 2013. Meanwhile, the growth rate of
of the procedure. As part of the application of this
government expenditure net of discretionary
Protocol, Member States are to notify data on
revenue measures is forecast to exceed the expen
government deficits and debt and other associated
diture benchmark as specified in Article 5(1) of
variables twice a year, namely before 1 April and
Council Regulation (EC) No 1466/97 of 7 July
before 1 October, in accordance with Article 3 of
1997 on the strengthening of the surveillance of
Council Regulation (EC) No 479/2009 of 25 May
budgetary positions and the surveillance and coor
2009 on the application of the Protocol on the
dination of economic policies ( 6 ) in 2012, while
excessive deficit procedure annexed to the Treaty estab
respecting it in 2013.
lishing the European Community ( 4 ).
— The debt-to-GDP ratio surged by 8,6 percentage
(4) When
considering
whether
a
decision
on
the
existence
of
points to 83,0 % in 2010, notably due to the
an excessive deficit should be abrogated, the Council
( 5 ) In line with the ‘Specifications on the implementation of the
( 1 ) OJ L 125, 21.5.2010, p. 38.
Stability and Growth Pact and Guidelines on the format and
( 2 ) The general government deficit and debt for 2009 were
content of Stability and Convergence Programmes’, as agreed
subsequently revised to currently 3,2 % of GDP and 74,4 % of
by the Council on 24 January 2012. See: http://ec.europa.eu/
GDP respectively.
economy_finance/economic_governance/sgp/pdf/coc/code_of_
( 3 ) OJ L 209, 2.8.1997, p. 6.
conduct_en.pdf
( 4 ) OJ L 145, 10.6.2009, p. 1.
( 6 ) OJ L 209, 2.8.1997, p. 1.

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L 179/18
EN
Official Journal of the European Union
11.7.2012
transfer of impaired assets to ‘bad banks’ in the
progress towards compliance with the debt reduction
context of financial sector stabilisation. After having
benchmark at the end of the transition.
dropped to 81,2 % of GDP in 2011, gross debt is to
increase again to 82,0 % of GDP in 2012 as a result
(8) In the view of the Council, the excessive deficit in
of the euro area stabilisation measures, according to
Germany has been corrected and Decision 2010/285/EU
the Stability Programme, before falling to 80 % of
should therefore be abrogated,
GDP in 2013 and remaining on a downward path
HAS ADOPTED THIS DECISION:
thereafter. This is broadly in line with the
Commission services’ forecast of a debt-to-GDP
Article 1
ratio of 82,2 % in 2012 and 80,7 % in 2013,
which does not consider potential gains from the
From an overall assessment it follows that the excessive deficit
winding-up of ‘bad banks’.
situation in Germany has been corrected.
(6) In
accordance
with
Article
126(12)
of
the
Treaty,
a
Article 2
Council decision on the existence of an excessive deficit
Decision 2010/285/EU is hereby abrogated.
is to be abrogated when the excessive deficit in the
Member State concerned has, in the view of the
Article 3
Council, been corrected.
This Decision is addressed to the Federal Republic of Germany.
(7) The
Council
recalls
that,
starting
in
the
year
following
the
correction of its excessive deficit, Germany is in a tran
sition period of three years (2012-2014), in which the
requirement under the debt criterion is to be considered
Done at Luxembourg, 22 June 2012.
fulfilled if the country makes sufficient progress towards
compliance with the debt reduction benchmark, in
For the Council
accordance with Article 2(1a) of Regulation (EC) No
1467/97. The fiscal adjustment planned by Germany in
The President
its stability programme is consistent with sufficient
M. VESTAGER

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